Written by Cláudio Afonso | LinkedIn | X
Shares of the Beijing-based automaker Li Auto fell more than 16% on Wednesday after posting weaker than expected results for the second quarter of the year.
The New Energy Vehicle (NEV) manufacturer saw its second quarter net profit tumbling 52% year over year to 1.1 billion yuan ($151.5 million) with deliveries reaching 108,581 vehicles, up 26% year on year.
In a new research note, JPMorgan analyst Nick Lai lowered the price target on the stock to $19 from $21 while maintaining a Neutral rating on the shares.
Lai said the company’s results in the second quarter “were in line with estimates, particularly vehicle margin, which saw moderate sequential slippage as a result of weaker mix”.
With an eye on a launch next year, Li Auto has been road-testing its next fully electric models in China following the launch of the Li Mega in March. On early Thursday, the U.S. listed shares of the company recovered part of the losses and traded 5% higher.
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Althoug the revenue increasead by 11% from a year ago to $4.3 Billion, the company’s gross profit narrowly decreased 1% to $853 million.
Li Auto delivered 51,000 vehicles in July achieving a new monthly record. After starting the year with lower than expected sales numbers, the automaker has now returned to over 50,000 plus monthly deliveries seven months later.
In the third quarter, the company expects to deliver between 145,000 and 155,000 vehicles, representing an increase of 38% to 47.5% from a year ago. Regarding total revenues, Li expects between 39.4 billion yuan ($5.4 billion) and 42.2 billion yuan ($5.8 billion), representing an increase of 13.7% to 21.6% from the third quarter of 2023.
Written by Cláudio Afonso | LinkedIn | X
Never Miss an Update on Li Auto
The post Li Auto Shares Drop 16% on Weaker Than Expected Q2 Results first appeared on EV.