5 EV Stocks to Buy as Tesla’s Market Share Declines

3. Li Auto Inc. (NASDAQ:LI)

Number of Hedge Fund Holders: 28

Li Auto Inc. (NASDAQ:LI) was founded in 2015 and is headquartered in Beijing, China. The company manufactures and sells new energy vehicles and smart electric sport utility vehicles. Li Auto Inc. (NASDAQ:LI) delivered 13,024 Li ONEs in June 2022, an increase of 68.9% year over year. The guidance range for Q2 deliveries was 21,000 to 24,000 units, but the company outperformed guidance by distributing 28,687 vehicles, representing a 63.2% year-over-year increase. Since first manufacturing its EVs in 2019, the company has delivered a total of 184,491 units as of June 2022.

On June 29, after Li Auto Inc. (NASDAQ:LI) reported that it would issue up to $2 billion of ADS on Nasdaq and will use the resultant money for R&D of next-gen BEVs, smart cockpits, and autonomous driving, Morgan Stanley analyst Tim Hsiao contended that investors might be worried that an at-the-market offering could be a short-term stock overhang. However, he sees capital replenishment as “a strategic positive” and believes that paired with Li Auto Inc. (NASDAQ:LI)’s $8 billion in cash reserves and liquid assets, it can finance the company’s strategic and product goals amid rising economic slowdown fears. The analyst maintained an Overweight rating and a $41 price target on Li Auto Inc. (NASDAQ:LI) shares.

In Q1 2022, 28 hedge funds reported long positions in Li Auto Inc. (NASDAQ:LI), up from 24 funds in the last quarter. Chase Coleman’s Tiger Global Management held the leading position in the company, comprising 19.7 million shares worth $510.8 million.