Li Auto's shares dip due to underperforming profit and pessimistic forecast from Chinese electric vehicle manufacturer.
Li Auto Shares Fall in Pre-Market Trading Amidst First-Quarter Profit Disappointment
Shares of Li Auto, the U.S.-listed Chinese electric vehicle manufacturer, experienced a decline in pre-market trading on Thursday, following the release of the company's first-quarter earnings that fell below the analysts' projections.
Li Auto reported an adjusted earnings per American depositary share (ADS) of 0.96 yuan, or approximately $0.13, on revenue of 25.93 billion yuan, equivalent to $3.61 billion. Analyst surveys conducted by Visible Alpha expected earnings per ADS of 1.03 yuan and revenue of $3.61 billion. The company notably beat its delivery expectations, delivering 92,864 vehicles during the first quarter, compared to expectations of 91,723 units.
Tie Li, the company's CFO, suggested that the first-quarter results demonstrated Li Auto's strong ability to navigate evolving market conditions, maintaining profitability in the process.
Li Auto's optimism for the upcoming quarter seemed to dwindle, with the company predicting deliveries between 123,000 and 128,000 vehicles, falling short of the $3.68 billion in revenue anticipated by Visible Alpha.
Approximately two hours before the market opened, Li Auto's U.S.-listed shares dropped more than 4%, marking a contrast to the nearly 16% increase the stock had achieved since the beginning of the year.
While the company's delivery numbers exceeded expectations, other factors - including fluctuating earnings performance, geopolitical tensions, and financial metrics - likely played a role in the stock's decline. Unless noted otherwise, additional details are not available.
In the context of Li Auto's first-quarter earnings, the CFO Tie Li suggested that while the company beat delivery expectations, the reported earnings were below analyst projections, leading to a decline in pre-market trading. Moving forward, Li Auto is considering various financing options, such as initial coin offerings (ICOs) or token sales, to bolster its financial position and potentially drive growth in trading.
