Movement Alert|Li Auto Falls 3.15% in Regular Trading, Q1 Earnings Turn to Loss as Institutions Cut Target Prices

Market Focus06-03

On June 3, Li Auto-W (02015.HK) declined 3.15% in regular trading, trading at HK$59.9 per share, with trading volume of HK$124 million. The decline came amid continued fallout from disappointing Q1 results and multiple analyst downgrades.

Li Auto reported Q1 net loss of RMB 2.29 billion, swinging from a profit of RMB 647 million a year earlier. Revenue fell 11.4% year-over-year to RMB 23 billion, while vehicle gross margin collapsed to just 6.1% from 19.8% in the prior-year period. The margin deterioration was attributed to lower average selling prices, product mix changes, and inventory clearance of older models. Critically, Q2 revenue guidance of RMB 24.1-25.4 billion significantly missed analyst consensus of RMB 29.88 billion.

Following the earnings release, Macquarie cut its target price to HK$57 and Jefferies lowered to HK$58.10, reflecting persistent concerns over near-term profitability. The broader EV sector also traded lower, with NIO down 2.2%, XPeng down 2.64%, and Leapmotor down 3.02%.

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