How difficult Li is in this very competitive, cutthroat market!

BrianTycangco鄭彥渊
05-21

$Li Auto(LI)$ $LI AUTO-W(02015)$ 1Q24 results miss on both revenue and EPS.

This was made worse by a lower than expected 2Q24 guidance of 105k to 110k vehicle deliveries - still a growth of ~25% YoY.

Operating expenses grew out of proportion to revenues primarily due to significant hike in employee count and salaries. This is likely to correct in 2Q24 and fully reflected in 3Q24.

From the looks of it, their Li MEGA isn't doing very well. This division faces the largest layoffs (called "staff optimization") as demand for $78K multipurpose vehicle (a.k.a Cyber Van) isn't up to expectations.

Proves just how difficult it is in this very competitive, cutthroat market. $XPeng Inc.(XPEV)$ $XPENG-W(09868)$ $NIO Inc.(NIO)$ $NIO Inc.(NIO.SI)$ $NIO-SW(09866)$ $Tesla Motors(TSLA)$ $BYD Co., Ltd.(BYDDF)$ $BYD COMPANY(01211)$

https://x.com/BrianTycangco/status/1792501170055115151

Plunge 18%! At What Price Would You Bottom LI?
Li Auto announced its Q1 2024 results, with net profit declining quarter-on-quarter. The financial report shows that in the first quarter of 2024, Li Auto's total revenue was 25.6 billion yuan, of which automotive sales revenue was 24.3 billion yuan, a year-on-year increase of 32.3% but a quarter-on-quarter decrease of 39.9%. ----------- At what price would you bottom Li Auto? What's your target price after the earnings plunge?
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Comments

  • Alvin2042
    05-21
    Alvin2042
    Li Auto misery is giving some breathing space to the lines of Nio n Xpeng in that pure EVs will be push back to next year or maybe later.
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