But they’re not the only ways to trade the EV boom these days.
Shares of Li Auto (LI) have been explosive. In fact, since finding double bottom support in October at $15, the stock has rocketed to a recent high of $35.55. However, this may only be the start of a much bigger move. Especially after being upgraded to a buy rating from a hold rating with a price target of $45.10 at Citigroup.
According to Barron’s, the analyst “appears to have become more optimistic about fourth-quarter and 2021 EV sales in China. His new target values Li at roughly 15 times estimated 2021 sales. Tesla (TSLA), for comparison, is trading for about eight times estimated 2021 sales.”
From a current price of $35.55, Li Auto could push to $50, near-term.