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LI Stock Price Predictions: Why You May Want to Drive Into Li Auto Before August 8

China-based electric vehicle manufacturer Li Auto (NASDAQ:LI) is getting ready to announce its second-quarter 2023 financial results on Aug. 8. Does this mean you should wait until Aug. 8 to buy LI stock? Not necessarily, as there are valid reasons to invest in Li Auto right now.

Li Auto had an amazing June update, with EV deliveries up 150.1% year over year in June and up 201.6% year over year in the second quarter. So, the company’s quarterly financial results will probably be very positive.

However, you might miss out on fast gains if you wait too long to take a position in LI stock.

As we’ll see, potential business-friendly policy changes in China could give the nation’s economy in general, and Li Auto in particular, a significant boost this year.

Li Auto’s Important Decision

While it’s not found on Li Auto’s press releases page, there’s a significant news item that EV stock traders need to pay attention to. According to a report from Fagen Wasanni Technologies, Li Auto “has decided not to use solid-state batteries in its future models due to their high cost.”

This may be a controversial move, but I feel that it’s a smart one. In contrast to rival EV manufacturer Nio (NYSE:NIO), which is doubling down on semi-solid-state batteries, Li Auto is apparently ditching them.

According to the report, solid-state batteries can be quite expensive; the battery pack alone could cost around 300,000 RMB ($42,000). That’s exorbitant, of course, so Li Auto is instead focusing on lithium-ion batteries that are capable of being charged quickly.

Li Auto “aims to leverage 400 kW fast-charging technology, enabling a 10-minute charge.” Thus, Li Auto’s lithium-ion batteries could prove to be both cost-efficient and time-saving.

A Policy-Driven Catalyst for LI Stock

In other news, Li Auto and other businesses could get ongoing financial support from China’s government. First, China’s National Development and Reform Commission pledged to support investments in several of the nation’s crucial industries.

Those industries include transportation and clean energy, so it’s easy to see how Li Auto could benefit from this. That’s not the only good news, though. Reportedly, investors are increasingly bullish about Chinese EV makers in the wake of optimistic commentary from China’s Politburo.

The Politburo is a high-ranking decision-making entity in China. In a meeting that was chaired by none other than Chinese President Xi Jinping, the nation’s leaders committed to “expanding domestic demand and letting consumption drive economic growth” (according to MarketWatch‘s interpretation).

China’s businesses could soon receive major government-funded stimulus. It’s not yet clear what form that stimulus might take, or which market segments will benefit the most. This appears to be a pivotal moment for China and, indirectly but materially, for Li Auto.

LI Stock: $50 Will Only Be the Beginning

There’s no denying it: recent developments cast Li Auto in a favorable light. Soon enough, the Li Auto share price will likely be much higher than it is today.

Granted, Li Auto’s upcoming quarterly financial report could be received well or poorly. Either way, though, there are positive catalysts that shouldn’t be ignored.

Therefore, LI stock is (in my humble opinion) destined to break through $50 soon, followed by $60 and $75 very quickly afterwards.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.