Li Auto Establishes Auto Parts Industrial Park in Jiangsu, China
August 19, 2022
Trending News 🌥️Li Auto($NASDAQ:LI) is looking to establish an industrial park for auto parts in Jiangsu province of China, where its current facility is located, CnEVPost reported on Thursday. As per an article released Wednesday by the local government, the Chinese EV maker signed a contract with the Changzhou city government for the industrial park project. The move comes as Li Auto looks to increase its production capacity in the face of rising demand for its EVs. The company has seen its sales grow rapidly in recent months, with its vehicles proving popular with Chinese consumers. The industrial park will no doubt help Li Auto to increase its production capacity further, and should have a positive impact on the company’s market share and earnings in the long term.
Martket PriceLi Auto stock opened at $30.5 and closed at $30.8 on the news.
VI AnalysisCompanies with strong fundamentals are more likely to be stable and have long-term potential. The VI app makes it easy to analyze a company’s fundamentals and determine its classification. LI AUTO is classified as a “cheetah” company, which means it has achieved high revenue or earnings growth but is considered less stable due to lower profitability. High growth companies are deemed more volatile as they attempt to grow faster. Despite being classified as less stable, LI AUTO is actually quite strong in terms of assets and growth. However, it is weak in terms of dividend and profitability. Overall, LI AUTO has a high health score of 7/10 considering its cashflows and debt. This means that the company is capable of safely riding out any crisis without the risk of bankruptcy. For more details please visit Star Chart.
SummaryThe industrial park will include a battery assembly plant, a motor assembly plant, and a stamping and welding plant. The news of the industrial park sent Li Auto’s stock price up 0.2% in trading today.
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