Li Auto (LI) delivered mixed first-quarter results early Wednesday, and guided lower for Q2 revenue despite predicting record deliveries. That comes a a few weeks after rival Nio (NIO) reported mixed Q1 results while Xpeng (XPEV) beat views. Li Auto stock rose.
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Li Auto Earnings
Estimates: Analysts expected a loss of two cents per ADR on revenue of $521.5 million, according to Yahoo Finance.
Results: Li Auto lost 3 cents a share as revenue soared to $545.7 million.
Outlook: Li Auto sees Q2 revenue of $609 million to $651.7 million, below estimates for $704.5 million. Deliveries should reach 14,500-15,500 vehicles, a gain of 120%-135% vs. a year earlier.
In Q1, Li Auto sold 12,579 SUVs, up 334% vs. the year-ago, pandemic-hit quarter, though down from Q4 2020’s 14,464 due to Lunar New Year seasonal effects. Sales momentum continued in April, with 5,539 deliveries, up 111% year over year and up 13% month over month.
Li’s sole vehicle, the Li One SUV, has a small gas engine to extend its range. The company began selling the Li One in December 2019 and has sold more than 50,000 units so far.
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Li Auto Stock
Shares popped 7.45% to 21.48 on the stock market today, testing the 50-day line after meeting resistance at that key level on Tuesday. Li Auto stock has seen its relative strength line plunge in 2021 after a sharp rally late last year, according to MarketSmith chart analysis. The RS line, the blue line in the chart provided, tracks a stock’s performance vs. the S&P 500 index.
Among other EV stocks that compete in China, Nio stock climbed 1.9%, Xpeng advanced 2.8% while Tesla (TSLA) edged higher. Nio, Xpeng and Tesla stock are all below their 50-day lines as well.
Nio and Xpeng reported results a few weeks earlier.
The Li One’s popularity is driving plans for new launches next year and beyond, the company says. That comes as Nio and Xpeng unveiled or launched new EVs earlier this year.
Meanwhile, Li Auto announced a $750 million convertible debt offering, looking to add to its cash position ahead of its planned EV expansion.
That weighed on Li Auto stock. It’s also seen to lag Nio and Xpeng in autonomous driving technology.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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