Chinese EV Maker Li Auto to Report Quarterly Numbers
Chinese electric vehicle (EV) maker Li Auto is scheduled to release its quarterly earnings on Tuesday morning. In addition to the financial results for the previous quarter, investors will be paying close attention to Li's guidance for third-quarter deliveries.
This delivery guidance will provide valuable insights into the current trends in EV sales in China. It is an important data point not only for Li but also for other major EV manufacturers such as Tesla and BYD, as they all operate in the world's largest market for new cars and EVs.
For the second quarter, Wall Street analysts are expecting Li to report a loss of 3 cents per share, with sales reaching $1.3 billion. Comparatively, in the same quarter last year, Li reported a 2-cent loss from $780 million in sales.
Li's performance in the second quarter was impressive, as they delivered about 87,000 units, marking an increase of over 200% compared to the roughly 29,000 units delivered in the second quarter of the previous year. It's worth noting that the second quarter of 2022 was significantly impacted by COVID-19 lockdowns in China.
In July, the first month of the third quarter, Li achieved a record-breaking delivery of 34,134 vehicles. Analysts are now anticipating that Li will deliver more than 90,000 vehicles for the entire third quarter, representing a quarter-to-quarter increase of approximately 5%. If the industry as a whole also experiences a 5% sequential growth, it would suggest that battery-electric vehicle sales in China remain relatively stable year over year.
While stable sales would not be disappointing, it is important to note that industrywide battery-electric vehicle sales saw a substantial year-over-year growth of around 10% in the first quarter and approximately 40% in the second quarter, bouncing back from the lows caused by the COVID-19 lockdowns.
Investors are hopeful for some year-over-year growth in the third quarter, and if Li provides guidance close to 100,000 units for the quarter, it would significantly boost investor confidence.
Li Auto's management will discuss the guidance and earnings during a conference call at 8 a.m. Eastern time.
Leading up to the earnings release, Li's U.S.-listed American depositary receipts (ADRs) have shown exceptional performance, with a year-to-date gain of 122%. This is significantly higher than the 18% and 34% gains of the S&P 500 and Nasdaq Composite, respectively.
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