To The Moon

Q&A（Question-and-Answer Session）is a session after the company's prepared remarks where institutional investors and analysts ask management questions. In this dialogue, you may find some valuable information that might affect the stock price in the following weeks.

Now let's look at some key points from Li Auto Q2 2022 Q&A Session Transcript  $Li Auto(LI)$ $LI AUTO-W(02015)$

Q:My question is about L9's retail traction. So the company disclosed the early August that L9 has received 30,000 confirm orders. So just wonder if we can have a refreshed discussion in terms of this latest retail trend feedback, especially competition with the other new energy SUVs and MPVs that some of your EVP’ have put in the market?

A:Your question about the traction right now, although, last month, we already kind of received almost the 30K order of L9. Today in the past two weeks, we still see a strong demand coming for L9.

Q:If you can comment on sort of L9 in the context of this competition with other SUVs and MPVs that some of your competitors have put in the market. But as far as BYD and so on so forth. Are you seeing competitive threat from them that sort of cause you to change your strategy or introduce more marketing incentives in front of customers?

A:In fact, the L9 has a very unique product positioning, actually, in this price band with this kind of size and smart features. We don't see there are any products that have kind of a product proposition close to our L9. Right now, it is more about the how much we can convert our customer to place order on our L9, when they have the budget between RMB400K to RMB500K so.

Q:My question, just wanted to follow-up on the quarter guidance, because I think third quarter volume guidance of 27,000 to 29,000 conservative. So considering the launch of L9 and improving supply dynamic. Should we attribute the conservative sell valid to the transition of Li ONE only or as the production ramp up of L9 is there any expectation or if there is any other reason we should take into consideration. So just simply due to the hiccup for Li ONE, how long do we should we expect this kind of impact will last?

A:About the question, in fact the when we give out this guidance, of course, we have seen some slowdown of the Li ONE order intake. I think primarily the issue right now is that when we have the new product into our retail stores, a lot of attention has been attracted by the new product, rather than the old product, actually, we are working with our sales team to regain the attention from our potential customers for Li ONE.

So on the other hand, about the potential launch of the new product, actually, the only comment I can give right now is that it will coming soon and will come sooner than the expectation. Yes, that is the only comment I can give.

The above Q&A are highlights that are edited for brevity. Click here for the full Li Auto Q2 2022 Earnings Call Transcript.​​

If you want to know more details, you can click here to re-watch the Li Auto Q2 2022 Earnings Conference Call