Li Auto (LI), the highly anticipated Chinese electric vehicle company, will finally IPO this coming week. Li Auto (LI) stock will see a lot of demand but the company is releasing 95 million shares to the public on opening day at a price range of $8-$10. It would have been nice to see 20 million shares at a price of $40-$45 or a much smaller offering but this is what we get. If the stock trades up to $18 after the IPO, the company will be worth $15.8 Billion. Low dollar price IPO's are generally not as appealing so it will be interesting to see how the stock market reacts. I still prefer the VITL IPO also opening this week.
LI IPO Prices July 30, opens for trading on July 31, 2020.
Li Auto is an innovator in China's new energy vehicle market. They design, develop, manufacture, and sell premium smart electric SUVs. Through their product, technology, and business model innovation, Li Auto provides families with safe, convenient, and cost-effective mobility solutions. They are the first to successfully commercialize extended-range electric vehicles, or EREVs, in China. The first model, Li ONE, is a six-seat, large premium electric SUV equipped with a range extension system and cutting-edge smart vehicle solutions. Li Auto started the volume production of Li ONE in November 2019 and delivered over 10,400 Li ONEs as of June 30, 2020.
Li Auto is dedicated to serving the mobility needs of families in China. To this end, they strategically focus on the SUV segment within a price range of RMB150,000 (approximately US$21,000) to RMB500,000 (approximately US$70,000). With their growing consumption power, families in China tend to choose SUVs for daily commutes and weekend family trips. As one of the most competitive SUV models in China, Li ONE is well positioned to capture the huge growth opportunity of this segment. They believe that Li ONE offers our customers unparalleled value for money with the performance, functionality, and cabin-space of a large premium SUV but pricing close to a compact premium SUV.
