Li Auto's Disappointing Q1 Earnings: 53% Sales Growth, Price Cuts, and Layoffs Ahead

Wuhan, Hubei China
AstraZeneca aims to double its revenue by 2030 through significant growth in its existing oncology, biopharmaceuticals and rare disease portfolio and by launching an expected 20 new medicines before the end of the decade.
By 2026, AstraZeneca will be carbon zero for Scope 1 and 2 emissions and by 2030 halve its Scope 3 emissions.
Li Auto announced hefty price cuts on all its vehicles except for the brand-new L6 SUV and will lay off more than 18% of its workforce.
Li Auto delivered 80,400 EVs in Q1, up 53% from a year ago but down 39% vs. Q4.
Li Auto reported weaker-than-expected first-quarter earnings and guided low on the current quarter.
Li Auto's disappointing earnings report has led to a brutal dumping of company shares, with Li Xiang, founder and CEO of the company, struggling to convince investors that it can keep growing amid intense competition and a price war.
The bulk of Li Auto's sales come from its SUV line of extended range EVs. The company will not release any all-electric SUVs in 2024 and expects Q2 deliveries to be between 105,000-110,000 vehicles with revenue of $4.1 billion-$4.3 billion.
The company earned $0.17 per share for the first quarter, lower than expected, and quarterly sales were $3.55 billion, missing consensus targets of $3.7 billion.
The company is also investing in disruptive innovation to shape the future of medicine and drive long-term growth. AstraZeneca has decoupled carbon emissions from revenue growth since 2015 while growing Total Revenue by 85% over the same period.
The intense price war has forced industry leaders such as BYD and Tesla to offer discounts on models across the board. Weak sales of Li Auto's new Li Mega multi-purpose vehicle (MPV) have added to its woes, with the company also reportedly in the midst of large-scale layoffs affecting almost 20% of its workforce.
Li Auto's Disappointing Q1 Earnings: 53% Sales Growth, Price Cuts, and Layoffs Ahead

Li Auto, a Chinese electric vehicle (EV) maker, reported weaker-than-expected first-quarter earnings and guided low on the current quarter. The company earned $0.17 per share for the first quarter, lower than expected, and quarterly sales were $3.55 billion, missing consensus targets of $3.7 billion (Fact 1). Li Auto delivered 80,400 EVs in Q1, up 53% from a year ago but down 39% vs. Q4 (Fact 2). The bulk of Li Auto's sales come from its SUV line of extended range EVs. The company will not release any all-electric SUVs in 2024 and expects Q2 deliveries to be between 105,000-110,000 vehicles with revenue of $4.1 billion-$4.3 billion (Fact 3). Li Auto announced hefty price cuts on all its vehicles except for the brand-new L6 SUV and will lay off more than 18% of its workforce (Fact 4).

Meanwhile, AstraZeneca, a pharmaceutical company, aims to double its revenue by 2030 through significant growth in its existing oncology, biopharmaceuticals and rare disease portfolio and by launching an expected 20 new medicines before the end of the decade (Fact 5). The company is also investing in disruptive innovation to shape the future of medicine and drive long-term growth. AstraZeneca has decoupled carbon emissions from revenue growth since 2015 while growing Total Revenue by 85% over the same period (Fact 6). By 2026, AstraZeneca will be carbon zero for Scope 1 and 2 emissions and by 2030 halve its Scope 3 emissions (Fact 7).

Li Auto's disappointing earnings report has led to a brutal dumping of company shares, with Li Xiang, founder and CEO of the company, struggling to convince investors that it can keep growing amid intense competition and a price war (Fact 8). The intense price war has forced industry leaders such as BYD and Tesla to offer discounts on models across the board. Weak sales of Li Auto's new Li Mega multi-purpose vehicle (MPV) have added to its woes, with the company also reportedly in the midst of large-scale layoffs affecting almost 20% of its workforce (Fact 9).


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Confidence

80%

Doubts
  • Are there any potential inaccuracies or unreported information regarding Li Auto's layoffs and price cuts?
  • How accurate are Li Auto's reported sales numbers?

Sources

90%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

AstraZeneca aims to double revenue by 2030

Financial Times Tuesday, 21 May 2024 07:37
  • Unique Points
    • AstraZeneca aims to double its revenue by 2030.
  • Accuracy
    • ]AstraZeneca aims to double its revenue by 2030.[/
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

75%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Chinese EV Mogul Li Xiang Tries To Assuage Investors About Li Auto

Forbes Magazine Yue Wang Tuesday, 21 May 2024 00:00
  • Unique Points
    None Found At Time Of Publication
  • Accuracy
    • Li Xiang, founder and CEO of Chinese electric vehicle maker Li Auto, lost almost $1 billion in a single day due to investor confidence being affected by ambiguous information on how to achieve the 2024 sales target.
    • Shares of Li Auto plunged 19% in Hong Kong and 12.8% on the Nasdaq after disappointing first quarter results.
    • Li Auto reported revenues of 25.6 billion yuan ($3.6 billion) for the first quarter, up 36.4%, but an operating loss of 584.9 million yuan compared to an operating profit in the same period last year.
    • The gross profit margin for Li Auto was 20.6% in the first quarter, down from 23.5% in the previous quarter.
    • An intense price war has forced industry leaders to offer discounts on models across the board, including Li Auto’s new Li Mega multi-purpose vehicle (MPV)
    • Li Auto is reportedly facing a class-action lawsuit by investors who allege misguidance regarding demand for the Li Mega MPV.
    • The company is reportedly undergoing large-scale layoffs affecting almost 20% of its workforce, or 5,600 employees.
  • Deception (30%)
    The author uses emotional manipulation by describing Li Xiang's loss of $1 billion in a single day and the brutal dumping of company shares. The article also engages in selective reporting by focusing on the negative aspects of Li Auto's financial performance and ignoring any positive information. There is no clear evidence of deception regarding concrete details on how Li Auto plans to meet its sales targets, but the ambiguity mentioned by Wang Hanyang could be seen as an attempt to obfuscate or mislead investors.
    • It is also reportedly in the midst of large-scale layoff affecting almost 20% of its workforce, or 5,600 employees.
    • An intense price war has forced industry leaders from BYD to Tesla to offer discounts on models across the board.
    • People check out a Li Mega at the 2024 Central China International Auto Show in Wuhan this month. RenYong/SOPA Images/LightRocket via Getty Images
    • Shares of the dual-listed firm plunged 19% in Hong Kong on Tuesday after falling 12.8% on the Nasdaq overnight.
    • The mogul still has a net worth of $5 billion, according to Forbes estimates.
  • Fallacies (85%)
    The author makes several appeals to authority by quoting analysts and reporting on the financial performance of Li Auto. However, there are also instances of inflammatory rhetoric used to describe the plunge in Li Xiang's net worth and the intense price war in the industry. No formal fallacies were found.
    • Investor confidence has been affected after Li Auto was quite ambiguous on how to achieve the 2024 sales target.
    • They also worry whether the company can maintain its gross profit margin with stepped up market competition.
    • An intense price war has forced industry leaders from BYD to Tesla to offer discounts on models across the board.
  • Bias (95%)
    The author expresses concern and doubt about Li Xiang's ability to meet sales targets and maintain gross profit margins due to intense competition and a price war. This is not an inherently biased statement, but the tone of the article could be perceived as negative towards Li Xiang and Li Auto.
    • ]An investor confidence has been affected after Li Auto was quite ambiguous on how to achieve the 2024 sales target[.
      • They also worry whether the company can maintain its gross profit margin with stepped up market competition.
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      79%

      The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
      (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

      A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

      Why Li Auto Stock Dropped 14% Today

      Yahoo Finance Rich Smith, Tuesday, 21 May 2024 07:39
      • Unique Points
        • Li Auto reported earnings of $0.17 per share for the first quarter, lower than expected
        • Quarterly sales were $3.55 billion, missing consensus targets of $3.7 billion
      • Accuracy
        • ]Li Auto reported earnings of $0.17 per share for the first quarter, lower than expected[
      • Deception (50%)
        The article contains selective reporting as the author only reports the negative financial results of Li Auto without mentioning the positive aspects such as a 53% increase in unit sales and a 36% increase in revenue. The author also uses emotional manipulation by stating 'That’s the opposite of what growth investors want to hear, and so they’re selling the stock today.' This statement is intended to elicit an emotional response from readers, encouraging them to make hasty decisions based on fear.
        • Earnings came in at just $0.17 per share, half of what Wall Street expected.
        • Quarterly sales of $3.55 billion similarly missed consensus targets of $3.7 billion.
        • Three months ago, Chinese electric-vehicle (EV) company Li Auto (NASDAQ: LI) announced powerful fourth-quarter earnings, but with a caveat: Management warned that a sales slump was coming in the 2024 first quarter. Now it’s time for that first-quarter report, and the news is not good.
      • Fallacies (85%)
        The author uses an appeal to authority fallacy by mentioning that The Motley Fool Stock Advisor analyst team identified the 10 best stocks for investors to buy and Li Auto was not one of them. This does not directly relate to the logical validity of the article's content.
        • ]The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now[...]Li Auto wasn’t one of them.[/
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      92%

      The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
      (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

      A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

      China EV Maker Li Auto Misses Views, Guides Low

      Investors.com Financial News Site Analysis - Comprehensive Report on Market Coverage and Analysis - Overall Rating: 90/100 (Highly Reliable, Informative, and Engaging Source of Financial Information). Investor's Business Monday, 20 May 2024 20:10
      • Unique Points
        • Li Auto reported weaker-than-expected first-quarter earnings
        • Li Auto earned 17 cents per U.S. ADR, down 10.5% vs. a year earlier
        • Revenue grew 36% vs. a year earlier to $3.6 billion, modestly meeting expectations
        • Li Auto delivered 80,400 vehicles in Q1, up 53% vs. a year earlier but down 39% vs. Q4
        • Bulk of Li Auto’s sales come from SUV line of extended range EVs
        • Li Auto will not release any all-electric SUVs in 2024, a shift
        • Li Auto expects Q2 deliveries of 105,000-110,000 vehicles
        • Revenue should be $4.1 billion-$4.3 billion
        • Li Auto announced hefty price cuts on all its vehicles except for the brand-new L6 SUV
        • Li Auto announced it would lay off more than 18% of its workforce
      • Accuracy
        • Li Auto will not release any all-electric SUVs in 2024
      • Deception (100%)
        None Found At Time Of Publication
      • Fallacies (100%)
        None Found At Time Of Publication
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      90%

      The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
      (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

      A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

      AstraZeneca sets ambition to deliver $80 billion Total Revenue by 2030 and sustained growth post 2030

      AstraZeneca Tuesday, 21 May 2024 00:00
      • Unique Points
        • AstraZeneca aims to deliver $80 billion in Total Revenue by 2030
        • Expected launch of 20 new medicines before the end of the decade
        • Significant growth from existing oncology, biopharmaceuticals and rare disease portfolios
        • Investing in disruptive innovation to shape future of medicine and drive long-term growth
        • Decoupling carbon emissions from revenue growth since 2015 while growing Total Revenue by 85% over the same period
        • By 2026, AstraZeneca will be carbon zero for Scope 1 and 2 emissions and by 2030 halve its Scope 3 emissions
      • Accuracy
        • AstraZeneca aims to double its revenue by 2030.
        • Li Auto reported earnings of $0.17 per share for the first quarter, lower than expected.
      • Deception (100%)
        None Found At Time Of Publication
      • Fallacies (100%)
        None Found At Time Of Publication
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (0%)
        None Found At Time Of Publication