Chinese electric carmaker Li Auto Inc. raised its revenue guidance and said it expects to deliver more than 100,000 vehicles in the third quarter after reporting better-than-expected quarterly results Tuesday.
(Bloomberg) — Chinese electric carmaker Li Auto Inc. raised its revenue guidance and said it expects to deliver more than 100,000 vehicles in the third quarter after reporting better-than-expected quarterly results Tuesday.
Li Auto swung to a net profit of 2.7 billion yuan ($375 million) in the three months through June on revenue of 28.7 billion yuan, it said in a statement Tuesday. It delivered a record 86,533 vehicles and gross margin hit 21.8%.
Li Auto said it expects to generate as much as 33.3 billion yuan in revenue in the third quarter, with EV deliveries reaching 100,000 to 103,000 units.
Shares of the company traded in the US pared an early drop of as much as 10%. They fell 6.7% to $43.52 as of 9:36 a.m. in New York. The stock has more than doubled so far this year.
Founded in 2015, Li Auto was dependent on a sole model — an extended-range electric sport utility vehicle — before releasing three cars targeting family users in mid-2022. It aims to have a lineup of 11 models by 2025, including five high-voltage pure EVs, and is planning to build 3,000 charging stations.
Rising sales should help the company achieve its first annual operating profit, said Bloomberg Intelligence analysts Steve Man and Joanna Chen.
Li Auto’s Chinese rivals, including BYD Co., Xpeng Inc., and Nio Inc. all increased sales last month, while Tesla Inc.’s deliveries slid 31% from June.
Data from the Passenger Car Association released Tuesday showed new-energy vehicle sales in China jumped 32% from a year earlier in July to 641,000 units.
(Updates with opening shares in fourth paragraph.)
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