Li Auto (NASDAQ: LI) stock plummeted 13% in intraday trading Monday after the Chinese electric vehicle (EV) manufacturer reported lower-than-expected revenue for the first quarter despite surging vehicle sales.
Li Auto (LI) recently announced its first-quarter 2024 financial results, showcasing strong revenue growth but falling short of analyst expectations. The company reported revenue of $3.55 billion, marking a 36.4% year-on-year increase but missing the analyst consensus estimate of $3.84 billion.
Adjusted net earnings per ADS came in at $0.17, below the analyst consensus estimate of $0.35. Vehicle sales experienced a notable uptick, increasing by 32.3% to $3.4 billion, primarily driven by a surge in vehicle deliveries. Total vehicle deliveries for the quarter reached 80,400 units, representing a robust 52.9% year-on-year increase.
Despite the revenue growth, Li Auto experienced some margin pressure. The vehicle margin declined by 50 basis points (bps) year-over-year to 19.3%, while the gross margin expanded by 20 bps year-over-year to 20.6%. Adjusted income from operations plummeted by 88.7% year-on-year to $13.9 million.
As of March 31, 2024, Li Auto (NASDAQ: LI) held cash and equivalents amounting to $13.7 billion, with cash provided by operating activities totaling $462.9 million for the quarter.
The company’s retail network continued to expand, with 474 retail stores covering 142 cities and 356 servicing centers operational as of the end of the quarter. Additionally, Li Auto operated 357 supercharging stations equipped with 1,544 charging stalls.
In April 2024, Li Auto delivered 25,787 vehicles, representing a marginal increase of 0.4% compared to April 2023.
CEO Xiang Li Unveils Latest High-Tech Vehicles and Infrastructure Projects
Mr. Xiang Li, chairman and CEO of Li Auto, noted the company’s advancements in high-tech vehicle offerings and infrastructure.
“In March, we launched and commenced delivery of our high-tech flagship family MPV, Li MEGA, which is also our first high-power charging BEV. Meanwhile, we accelerated our efforts to deploy supercharging stations nationwide, adding charging resources for Li Auto users to expedite the 0-to-1 development phase of our high-power charging BEVs.”
He added,
“In April, we launched and commenced delivery of Li L6, a five-seat premium family SUV, to satisfy the mobility needs of more young families, making all-wheel-drive range extension system and intelligent features available on vehicles priced below RMB300,000.”
Outlook
Looking ahead, Li Auto forecasts second-quarter fiscal 2024 revenue between $4.1 billion and $4.3 billion, representing a year-on-year increase of 4.2% to 9.4%. The company also anticipates delivering 105,000 to 110,000 vehicles in the first quarter, reflecting a year-on-year increase of 21.3% to 27.1%.
Li Auto (NASDAQ: LI) Stock Movement
LI stock plunged 12.78% on Monday, closing at $21.71. This marks a 19.59% decrease over the week. Trading volume soared to 36,058,080 shares, significantly higher than the average daily volume of 9.48 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
