Stock Track | Li Auto Shares Plummet as Q3 Earnings Disappoint, Competition Intensifies

Stock Track11-01

Shares of Chinese electric vehicle maker Li Auto (02015) plummeted nearly 11% on Thursday, November 1st, following the company's third-quarter earnings report that fell short of expectations and raised concerns about intensifying competition in the Chinese EV market.

Despite reporting a 24% increase in revenue to 42.87 billion yuan ($6.02 billion) for the quarter, Li Auto's net profit slipped 0.3% to 2.81 billion yuan ($395 million). The company cited intense price competition and lower average selling prices as factors that pressured its gross margins, which declined to 21.5% from 22% a year earlier.

Analysts at Citi Research maintained a "neutral" rating on Li Auto, calling the company's fourth-quarter sales guidance "soft" and noting that it underperformed peers in terms of order-to-sales ratio. For the fourth quarter, Li Auto expects to deliver between 160,000 and 170,000 vehicles, representing a year-over-year increase of 21.4% to 29%, and forecasted revenue in the range of 43.2 billion to 45.9 billion yuan, up 3.5% to 10% from a year ago.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment