Li Auto-W (02015) shares plummeted 5.06% during intraday trading on Thursday, reflecting investor concerns following the company's disappointing first-quarter financial results.
The electric vehicle maker reported a net loss of 2.276 billion yuan for Q1, a sharp reversal from a profit of 647 million yuan in the same period last year. Vehicle gross margin collapsed to 6.1%, down 13.7 percentage points year-over-year, primarily due to a downward shift in product mix toward lower-priced models and reduced average selling prices.
Despite deliveries rising 2.45% to 95,100 units, Q1 revenue fell 11.4% year-over-year to 22.98 billion yuan, highlighting the erosion of per-unit economics. Additionally, the company recently granted 35 million share options to executives with vesting tied to ambitious market capitalization milestones, with the first tranche requiring the company's value to nearly double from approximately 107.3 billion HKD to 200 billion HKD.
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