The shares of Chinese plug-in hybrid and electric vehicle (EV) maker Li Auto (NASDAQ:LI) are tumbling today after the company reported weaker-than-expected first-quarter results. LI stock is sinking over 10% in early trading. The firm’s Q2 revenue guidance also came in well below analysts’ average estimate.
Li’s Q1 Miss and Guidance Shortfall
Li per share of 17 cents versus analysts’ average estimate of 20 cents. On the top line, its revenue came in at $3.6 billion, missing the mean outlook by $200 million.
On the positive side, the firm’s revenue versus the same period a year earlier, while its deliveries jumped 53% year-over-year to 80,400. However, Li’s net income, excluding certain items, sank 9.7% year-over-year (YOY) to $177 million.
Meanwhile, the automaker expects to generate sales of $4.1 billion to $4.3 billion during the current quarter, well below of $5.3 billion.
Additionally, the firm guidance to 76,000 to 78,000 versus its previous outlook of 100,000 to 30,000. Li blamed the reduction on weaker-than-expected demand for its seven-seat battery-electric van. The latter vehicle, which seats seven passengers, is the company’s first automobile that runs only on electric batteries.
A Mixed Picture for China’s EV 蜜桃传媒
The combined sales of EVs and hybridscompared to the same period a year earlier in China. Deliveries of battery-electric vehicles soared 46% year over year, while battery-electric vehicles registered a modest 7% increase. Moreover, JPMorgan recently found that Chinese consumers have become less worried about the prices of EVs and for their EVs, even if they have to pay more for those add-ons.
However, in a possibly ominous sign for the sector, some Chinese EV makers longer to pay their suppliers, Bloomberg recently reported.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
