LI - Li Auto drops 10% after reporting second-quarter results

2023-08-08 10:18:56 ET

Li Auto Inc. ( NASDAQ: LI ) fell 10% on Tuesday after reporting second quarter results.

Nio ( NIO ) dropped 6.8% and Xpeng, Inc. ( XPEV ) fell 3.6% .

For the third quarter of 2023, LI expects deliveries of vehicles to be between 100,000 and 103,000 vehicles, representing an increase of 277% to 288.3% from the third quarter of 2022.

Total revenue should be between$4.46B and $4.59B, representing an increase of 246% to 256.4% from the third quarter of 2022.

For the second quarter, vehicles sales totaled $3.86B, an increase of 229.7% from the second quarter of 2022 and an increase of 52.6% from the first quarter. The company delivered 34,134 vehicles for the quarter, an increase of 227.5% from July 2022.

“We crossed the 30,000 monthly delivery milestone in June, closing the second quarter with an all-time high vehicle delivery, while all of the three Li L series models maintained sales leadership in their respective categories,” Chief Executive Officer Xiang Li said in a statement.

“These accomplishments solidified our standing as the preferred premium brand for families, firmly positioning us to achieve the revenue target of RMB100 billion in 2023. Facing the competitive market dynamics in China’s NEV industry, in the second quarter we achieved our highest-ever profitability.”

The Chinese market for EVs is becoming increasingly competitive with more players entering, pushing margins lower.

LI is up 101% so far this year and up 27% over the past 12 months.

More on EV stocks:

• Li Auto beats Q2 top and bottom line estimates; initiates Q3 outlook
• Tesla's China deliveries fell to a 2023 low in July
• Li Auto sales surge by 227.5% in July

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