A lovely discount for adding to my starter position.
Goldman estimates Li Auto will have $22B net cash by 2025. Market cap at $27B today. 78% of market cap in cash by 2025 with $7B in free cash flow. The company is already profitable and will have higher margins than BYD and +25% higher growth. Currently, 1 in 4 cars sold in China are NEVs. Chinese middle class will be 800 million strong in 10 years.
Personally, I am accumulating on all dips. This is not advice, do your own DD, etc.just wait until $28 and buy it. And then sell around $40. From news release the company reported decreasing sales expectations “Down 24% from its prior outlook for 100,000-103,000 deliveries.” Doesn’t seem to warrant the 40+% haircut in pps imo
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
