By Yifan Wang
Shares of Li Auto Inc. soared in Wednesday trading, as investors welcomed the launch of the Chinese electric-car maker's new, second-ever vehicle model.
The stock jumped as much as 12% in Hong Kong within an hour of trading, briefly hitting a record of 154 Hong Kong dollars (US$19.6). Shares were last up 9.1%.
The new vehicle model, called L9, is a bigger sport utility vehicle than the company's signature Li ONE model. Analysts said the design and technology of the new model, unveiled late Tuesday, look promising.
"Li Auto's Li ONE and L9 are both strongly competitive against peers, or even luxury [internal combustion engine] SUV models," such as several models by Mercedes Benz and BMW, Citi analysts said in a note on Wednesday. Their analysis indicate that Li Auto cars offer a similar vehicle size as the luxury-brand models at "much lower" full-life cycle costs.
Daiwa analysts were similarly positive on Li Auto's new car launch, noting "significant progress" in the new car's electrical and electronic system design, and driver-assistance functions.
Both Daiwa and Citi maintained Li Auto's rating at buy.
Other Chinese electric-car makers tracked the upbeat momentum higher as well. XPeng Inc.'s Hong Kong-listed shares rose 4.1% and NIO Inc. was up 3.4%.
Write to Yifan Wang at email@example.com
(END) Dow Jones Newswires
June 21, 2022 23:13 ET (03:13 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.