Li Auto vs Tesla Which Performs Better?

Both Li Auto and Tesla are major players in the electric vehicle industry, with both companies experiencing significant growth in the stock market. Li Auto, a Chinese electric vehicle manufacturer, has been gaining momentum with its innovative designs and strong sales performance in the Asian market. Meanwhile, Tesla, an American electric vehicle giant, continues to dominate the market with its groundbreaking technology and global brand recognition. Investors are closely watching the competition between these two companies as they vie for market share and profitability in the rapidly expanding electric vehicle sector.

Li Auto or Tesla?

When comparing Li Auto and Tesla, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Li Auto and Tesla.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Li Auto has a dividend yield of -%, while Tesla has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Li Auto reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Tesla reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Li Auto P/E ratio at 15.85 and Tesla's P/E ratio at 109.81. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Li Auto P/B ratio is 2.42 while Tesla's P/B ratio is 19.95.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Li Auto has seen a 5-year revenue growth of 0.00%, while Tesla's is 2.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Li Auto's ROE at 16.20% and Tesla's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $21.85 for Li Auto and $415.71 for Tesla. Over the past year, Li Auto's prices ranged from $17.44 to $46.44, with a yearly change of 166.28%. Tesla's prices fluctuated between $138.80 and $436.30, with a yearly change of 214.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.