Li Auto Shares Soar 6.07% on Strong Sales, Institutional Backing

Li Auto (LI) shares surged 6.07%, reaching their highest level since February 2025, with an intraday gain of 7.40%.

The strategy of buying LI shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years. The annualized return was 15.5%, which is in line with the overall market performance. However, the strategy underperformed the high-performing stocks like AXON and CRWD, which had annualized returns of 50.82% and 38.27%, respectively. This suggests that while LI provided stability, it did not generate the same level of compound returns as the outperforming stocks. Investors seeking higher growth may need to consider other investment options, especially those in the technology and enterprise sectors.

Li Auto's recent stock price increase can be attributed to several key factors. The company's strong sales figures have significantly boosted investor confidence, leading to a sharp rise in share prices. This positive sentiment is further supported by Goldman Sachs' maintained Buy rating and a price target of $35.30, indicating ongoing confidence from major financial institutions in Li Auto's growth potential.

Li Auto's strategic upgrades and delivery updates have also played a crucial role in its stock performance. The company has completed a comprehensive upgrade of its model lineup and began deliveries of the Li MEGA Home in late May, which could contribute to increased sales and positive stock performance. Additionally, the Canada Pension Plan Investment Board's acquisition of a new stake in Li Auto reflects strong institutional interest and potential positive market impact.