Li Auto Reports Q1 2024 Financial Results: Revenue and Earnings Miss Analyst Estimates, Stock Price Drops

Beijing, Beijing Municipality China
Adjusted income from operations decreased by around the same percentage
Li Auto announced it would not release any all-electric SUVs this year
Li Auto faces competition from Chinese EV makers like Nio and Tesla China, as well as international players
Li Auto had 474 retail stores and 356 servicing centers as of March 31, 2024
Li Auto reported lower-than-expected revenue and earnings for Q1 2024
Quarterly deliveries were 80,400 vehicles, representing a 52.9% YoY increase
Total revenues reached RMB25.6 billion, a 36.4% increase YoY
Vehicle margin declined by half a percentage point YoY to 19.3%
Vehicle sales were RMB24.3 billion and gross profit was RMB5.3 billion
Li Auto Reports Q1 2024 Financial Results: Revenue and Earnings Miss Analyst Estimates, Stock Price Drops

Li Auto, a Chinese electric vehicle (EV) maker, reported lower-than-expected revenue and earnings for the first quarter of 2024. Despite a significant increase in vehicle sales and deliveries, Li Auto missed the analyst consensus estimate for both revenue and adjusted net earnings per ADS. The stock price dropped following the results.

According to Li Auto's financial report, total revenues reached RMB25.6 billion (US$3.6 billion), a 36.4% increase compared to the first quarter of 2023. Quarterly deliveries were 80,400 vehicles, representing a 52.9% year-over-year increase.

Vehicle sales were RMB24.3 billion (US$3.4 billion), and gross profit was RMB5.3 billion (US$731.9 million). Li Auto had 474 retail stores in 142 cities and 356 servicing centers as of March 31, 2024.

However, the vehicle margin declined by approximately half a percentage point year over year to 19.3%, while adjusted income from operations decreased by around the same percentage. Li Auto also reported having $13.7 billion in cash and equivalents.

Despite these strong financial results, Li Auto missed analyst expectations for revenue and earnings, causing the stock price to drop significantly.

Additionally, Li Auto announced that it would not release any all-electric SUVs this year. This news added to investor concerns about the company's volume and margin prospects in the competitive EV market.

Li Auto faces competition from other Chinese EV makers like Nio and Tesla China, as well as international players. The company is also upgrading and adding stores, while EREV is becoming more competitive with offerings from Huawei/Aito in the premium BEV market.

The Li Mega MPV was launched on March 1, 2024. Deutsche Bank has expressed concerns about Li Auto's ability to transfer its EREV success to BEV and maintain its competitive edge in the market.


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Confidence

90%

Doubts
  • Are there any other factors contributing to the stock price drop besides the financial results?
  • Is the decline in vehicle margin a temporary issue or a long-term trend?

Sources

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

Li Auto shares plunge in HK on disappointing earnings, delay of more BEV launches

CnEVPost Phate Zhang Tuesday, 21 May 2024 02:43
  • Unique Points
    • Li Auto finds itself up against the ropes for the first time in a long time, facing uncertainty over volume, declining margins and concerns about its BEV roadmap.
    • Li Auto won’t release any all-electric SUVs this year.
  • Accuracy
    • ]Li Auto reported a net income of RMB 591.1 million ($81.6 million) in the first quarter, down 36.7% from a year earlier and down 89.7% from the fourth quarter.[
    • Li Auto guided to deliver between 105,000 and 110,000 vehicles in the second quarter.
    • Li Auto pushed back its plan to launch more all-electric models to the first half of next year.
  • Deception (30%)
    The article contains selective reporting as it only reports Li Auto's disappointing earnings and delays in launching all-electric models without mentioning the reasons behind these issues or any positive information. The author also makes a comparison to Tesla China without providing any context or evidence, implying that Li Auto needs a similar number of self-operated superchargers as Tesla to bring its all-electric products to market, which is an opinion not based on facts.
    • Li Auto reported financial results yesterday before the US stock market opened that showed it posted a net income of RMB 591.1 million ($81.6 million) in the first quarter, down 36.7 percent from a year earlier and down 89.7 percent from the fourth quarter.
    • Li Auto won’t release any all-electric SUVs this year, and they will be released in the first half of next year.
    • Ultimately, we suspect LI will have to consider lowering its price range on BEVs to garner larger volumes.
  • Fallacies (85%)
    The author makes an appeal to authority by quoting Deutsche Bank's analysis of Li Auto's challenges in transitioning from EREV to BEV and their expectation that Li Auto will have to lower its price range on BEVs. The author also uses inflammatory rhetoric by stating that Li Auto finds itself 'up against the ropes for the first time in a long time, facing uncertainty over volume, declining margins and concerns about its BEV roadmap.'
    • Li Auto’s BEV endeavors appear to be facing structural challenges as transferring its EREV success to BEV is not so straightforward, Yu’s team said.
    • Ultimately, we suspect LI will have to consider lowering its price range on BEVs to garner larger volumes.
    • At the core, we believe this is indicative of two broader developments: EREV becoming much more competitive mostly due to Huawei/Aito and premium BEV simply being a difficult market to crack (just ask Nio)
    • The team expects Li Auto to deliver 505,000 units in all of 2024, below the company’s guidance of 560,000 units at the low end of the range.
  • 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

99%

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 Maker Li Auto Misses Q1 Revenue Expectations Despite Surging Vehicle Sales, Stock Tanks

Yahoo Finance Anusuya Lahiri Tuesday, 21 May 2024 10:37
  • Unique Points
    • Li Auto reported fiscal first-quarter 2024 revenue growth of 36.4% year-on-year to $3.55 billion.
    • ,
  • Accuracy
    No Contradictions at Time Of Publication
  • 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

98%

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

Li Auto Inc. Announces Unaudited First Quarter 2024 Financial Results

Yahoo Finance Li Auto Tuesday, 21 May 2024 10:38
  • Unique Points
    • Li Auto Inc. announced financial results for the quarter ended March 31, 2024
    • Total revenues reached RMB25.6 billion (US$3.6 billion)
    • Quarterly deliveries reached 80,400 vehicles, a 52.9% year-over-year increase
    • Vehicle sales were RMB24.3 billion (US$3.4 billion)
    • Gross profit was RMB5.3 billion (US$731.9 million)
    • Li Auto had 474 retail stores in 142 cities and 356 servicing centers as of March 31, 2024
    • Total revenues increased by 36.4% compared to the first quarter of 2023
  • Accuracy
    • Li Auto reported a net income of RMB 591.1 million ($81.6 million) in the first quarter, down 36.7% from a year earlier and down 89.7% from the fourth quarter.
    • Li Auto guided to deliver between 105,000 and 110,000 vehicles in the second quarter, lower than Wall Street expectations of 130,692.
    • Li Auto won’t release any all-electric SUVs this year.
  • 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