Auto

Rose

Billion

<ul class="list-ic vertical"> 
 <li> 1 <a>Li Auto Inc (NASDAQ: LI) posted quarterly earnings on August 8, 2023.&nbsp;</a> </li> 
 <li> 2 <a>Despite the company’s better-than-estimated earnings result, Li Auto stock price dwindled.&nbsp;</a> </li> 
 <li> 3 <a>Li stock fell over 18% since the earnings release.&nbsp;</a> </li> 
</ul> 
The electric vehicle (EV) space is one of the hot sectors within the broader automobile industry. Chinese EV manufacturer Li Auto Inc. (NASDAQ: LI) recently posted quarterly earnings and the performance in the last several months cements the popularity of the growing sector. Even Li Auto stock price soared almost double in between the last two earnings reports.&nbsp; 
Li Auto reported quarterly earnings on August 8th, 2023, posting better than the estimated results. However, the stock price did not take the optimism and saw a trend reversal.&nbsp;&nbsp; 
Following the earnings, Li Auto stock price fell 18% within the last 2 weeks. It was in an uptrend for the past several months and consolidated for almost a similar time frame before then.&nbsp; 
The fall in Li stock price was an impact of the hit that the Chinese EV market took after the American EV giant <a href="https://www.thecoinrepublic.com/2023/08/11/tesla-stock-price-prediction-is-profit-booking-over-in-tesla/" rel="noopener noreferrer nofollow">Tesla</a> announced a price cut. Elon Musk’s auto company announced reducing the prices for its vehicles, consecutively for the second week.&nbsp; 
In a recent announcement, Reuters reported, the company noted to decrease prices of Model S and X by more than 6%. The price drop came in the wake of July month’s sales reduced by over 30%.&nbsp; 
Major Chinese EV <a href="https://www.thecoinrepublic.com/2023/08/15/baidu-inc-bidu-stock-earnings-on-august-22-next-stop-170/" rel="noopener noreferrer nofollow">companies</a> suffered from the decision and the stock prices fell since Tesla’s move. This explains the sudden course change in Li Auto stock price despite the positive earnings.&nbsp; 
South China Morning Post, a prominent Chinese media outlet, reported that Li Auto hit $39.9 Billion in revenue. In addition, the company nearest competitor of Tesla in the premium EV segment in China posted a net profit of $320 Million. The earnings per share (EPS) stayed at $0.35.&nbsp; 
<h2 class="wp-block-heading" id="strong-li-auto-stock-price-movement-strong">Li Auto Stock Price Movement</h2> 
Li stock price is trading at $40.6 following an increase of 1.6% in the last intraday trading session. The stock price saw a jump of over 85% since the start of this year, in which, most of it was covered in the last three months.&nbsp; 
<div class="wp-block-image"> 
 <figure class="aligncenter"> 
 <img decoding="async" src="https://lh3.googleusercontent.com/2PAwACC1aMX2bPAilprSqS4U2DpFFRZZw_00A99dMpkK15ETufLliW3cTd9cmI90FHpTZ5kPRf959w9RVGpaHYRWr9yNmD4hZWMGGD39vJJLW1LtZUvy215bHSj9GMrRuQsNnezFC0XJgA721LT0ow" alt="Li Auto Stock Price Hits High of $47, Rose 95% in Three Months&nbsp;"> 
 <figcaption class="wp-element-caption">
 Source: Li Auto Inc (NASDAQ: LI) Stock Price Movement on <a href="https://www.tradingview.com/x/0kzTAlPe/" rel="noopener noreferrer nofollow">TradingView</a> 
 </figcaption> 
 </figure> 
</div> 
Before taking the downside path, Li Auto stock hit $47, the highest trading price since November 2020.&nbsp; 
Though Li Auto’s stock price is above 50 and its 200-day EMA, it is closing down with a 50-day moving average given the recent drop. The price level of $40 is acting as immediate support for the stock and it should sustain between $37 to $40 considering the up move it had seen in the past months.&nbsp; 
MACD curve has changed the upside trajectory and shows a downward move indicating a further drop in Li Auto stock. RSI is sustaining at 67 which suggests the stock price is holding strong for now but a slight retracement is possible down the road.&nbsp; 
<h5 class="wp-block-heading">Disclaimer</h5> 
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Li Auto Stock Price Hits High of $47, Rose 95% in Three Months

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