Why Shares of Li Auto Fell in December
Shares of Chinese automaker Li Auto (NASDAQ: LI) fell 19.9% in December, according to data provided by S&P Global Market Intelligence, as investors began to have second thoughts about electric vehicle valuations. Li also increased the share count, selling into a rally to help boost its cash.
It's been a great year for Li stock, which is up more than 150% in 2020 as of late November on investor enthusiasm about electric vehicles and the Chinese EV market in particular. Li makes an electric SUV with a gasoline-powered "range extender," a nice bit of insurance for consumers in rural parts of China where recharging infrastructure is still hard to find.
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Source Fool.com