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The shares of Chinese electric vehicle manufacturer Li Auto (NASDAQ: LI) were heavily traded upwards on Tuesday.The company’s percentage value has been volatile since its IPO in July.
As of 1:45 p.m.EDT, U.S. shares in the custodian of Li Auto rose 11.2% from Monday’s final price.
Li Auto’s shares have been on a roller coaster since the company became public in the United States on July 30.
Knowledge of LI through YCharts.
However, Li is not just a company with a smart business plan and intentions, the company has been shipping its first vehicle, the Li One crossover SUV, since November 2019, and it is a product with an intriguing differentiator.
While several companies, such as Tesla (NASDAQ: TSLA) and its national rival Li NIO (NYSE: NIO), have targeted segments of the Chinese high-end SUV market with white heating and electric models, the Li One adds an attractive turn that would possibly have been encouraged through General Motors’ original Chevrolet Volt (NYSE: GM): an on-board generator.
The Li One SUV is a vehicle with a generator on board to charge. Image source: Li Auto.
The Li One is an electric vehicle, not a hybrid, but has an onboard gas generator that acts as a “range extender”, charging the SUV battery on the fly when charging stations are not available.
The idea is this: high-speed electric vehicle chargers are not unusual in major Chinese cities such as Beijing and Shanghai and its surroundings; they are still relatively rare in many other parts of the country, but as in the United States, gas stations are plentiful.The Li One is an electric vehicle that will not leave its occupants stranded when there is no fast charging station nearby.
Some analysts who have looked hard at Li Auto see a lot to like. Two Wall Street banks introduced a hedge of the company with bullish ratings last week, pointing to the range extender and stating that the company has the infrastructure and resources to build production to around 500,000 cars a year through the middle of the decade.
Li Auto is an intriguing company that is not yet well known in the United States, but belongs to a sector (electric vehicles) that has benefited from the intense interest of auto investors this year, so it’s no wonder that its worth percentage has been volatile in recent weeks.
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John Rosevear owns shares in General Motors.Motley Fool owns shares and recommends Tesla.Motley Fool has an outreach policy.
Because Li Auto’s stock is up today