2024-04-22 11:00:48 ET
Summary
- Li Auto's stock price has declined despite growing deliveries and improving fundamentals.
- The decision to engage in a price war with Tesla is seen as a positive move, indicating the company's ability to compete and continue gaining market share.
- Li Auto's balance sheet is strong, with a large cash pile and no leverage, making it well-equipped to sustain a price war.
- My valuation analysis suggests that the stock is undervalued by five times.
Investment thesis
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For further details see:
Li Auto: The Stock Is Dirt Cheap