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Tagged: li auto

Chinese EV Billionaire Boosts His Wealth To Almost $10 Billion

Li Xiang, chairman and CEO of electric vehicle maker Li Auto, saw his wealth jump $1.5 billion to $9.6 billion on Monday as investors approved his discounting strategy in China’s fiercely competitive EV market. But analysts warn that an intensifying price war might eventually hurt Li Auto’s margins down the road.

Following the release of fourth quarter earnings on Monday, shares of the dual-listed company jumped as much as 26% in Hong Kong on Tuesday after rallying almost 19% in the Nasdaq overnight. Li, who derives his net worth from a Li Auto stake, ranked on Monday as one of the five biggest wealth gainers worldwide, according to Forbes’s Real-Time Billionaires List.

The 42-year-old is proving that price cuts have not eaten into Li Auto’s bottom line. To defend itself against rivals such as the Huawei-backed Aito, which is targeting the same family market with its hybrid SUVs, Li Auto started in August to offer at least 15,000 yuan ($2,000) discounts on its extended-range vehicles that retail for more than $42,000.

These hybrids include a gasoline-powered engine so that batteries can be charged on the go. In addition to alleviating range anxiety — the cars can travel up to 1,100 kilometers with gas-generated electric power — Li Auto’s hybrids boast extra interior space and even a small refrigerator for longer trips.

In the fourth quarter of 2023, sales of its three models — the five-seat Li L7, six-seat Li L8 and six-seat Li L9 – more than doubled year-on-year to $5.9 billion. Net profit came in at $810 million, up 2,068% from a year earlier. Gross margins for its vehicles reached 23.5%, even higher than Tesla’s 17.6% margin during the same period, and that was after the American EV maker slashed prices

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‘Tesla killer’: Chinese billionaire makes $4 billion overnight

A Chinese billionaire has seen his personal wealth skyrocket by a staggering $US2.6 billion ($A3.97b) overnight.

On Monday local time (Tuesday AEDT), Chinese electric vehicle maker Li Auto announced its fourth quarter earnings and investors were stoked.

As a result, the company, which is listed on two stock exchanges, surged in value.

Li Auto’s market capitalisation jumped by 26 per cent in the Hong Kong stock market, while it hit nearly 19 per cent on the US’s NASDAQ.

This was great news for the company’s chief executive and founder Li Xiang, who has been dubbed a Chinese Elon Musk, and holds a large stake in his company.

According to the Forbes Billionaire Index, at the time of writing, Mr Li’s net worth now stands at $US10.7 billion ($A16.3b).

Before the market rally, it stood at $US8.1 billion ($A12.4b).

Forbes listed Mr Li as one of the five biggest wealth makers worldwide on Monday.

Mr Li, 42, is currently ranked as number 34 on China’s rich list and is number 748 on the Global Billionaire’s Index.

Li Auto isn’t his first successful entrepreneurial venture.

Mr Li launched a computer and gadget review website called pcpop.com in 2005 as soon as he finished high school.

Then in 2005, he spotted a gap in the market and launched a vehicle news website called Autohome, which debuted on the New York Stock Exchange in 2013.

In 2015, he launched Li Auto.

Li Auto surged on stock markets in the wake of the news that sales of its three models had more than doubled compared to the previous year to $US5.9 billion ($A9b).

The company’s total net profit came in at $US810 million ($A1.2b), which was a 2068 per cent increase from the previous 12 months.

The profit margin it gains from every sale of

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