Electric vehicle pioneer 's (NASDAQ: TSLA) rocky first-quarter earnings report has some investors looking for other places to put their money in the EV space. Despite some recent challenges, Li Auto (NASDAQ: LI) offers a compelling alternative.

Li's stock was flying high after great earnings report in February, but then its Mega model tanked and the stock plummeted after the company slashed Q1 2024 delivery guidance.

With aggressive internal goals of 8,000 units per month, the Mega was intended to be Li's first attempt at an EV play to draw in new customers. However, consumers weren't buying and orders were far below expectations. CEO Li Xiang sent out an internal memo in March admitting the company misjudged the market. He acknowledged that the new EV strategy was a misstep and that Li needs to refocus on delivering value and a quality user experience.

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Source Fool.com