Chinese electric-vehicle (EV) maker Li Auto is surging after topping first-quarter expectations. That’s in stark contrast to yesterday’s mix of EV earnings. ⚡
The company reported $2.74 billion in revenue (+97% YoY) and earnings per share of $0.21 vs. the $0.10 estimate.
It delivered 52,584 vehicles during the quarter, up 66% YoY and expects to deliver 76,000 to 81,000 vehicles in Q2. In April, it delivered 25,681 vehicles, which puts it on track to meet the lower end of that guidance. 🚗
CEO Xiang Li endorsed the progress, saying Li Auto claimed third place in sales among Chinese NEV brands priced over $29,000 during the quarter. This came despite an increasingly competitive environment. With that said, like others in the space, its vehicle margin compressed from 22.4% to 19.8% YoY as pricing wars continue and costs remain elevated. 🔻
Strong production and delivery numbers also lead to free cash flow of $975.9 million, more than double last year’s Q1 figure. Operational issues have plagued many of its smaller competitors, but clearly, the company has built strong demand for its products and is delivering on them.
Investors appear optimistic its momentum can continue, as $LI shares rose 14% to a 7-month high. 📈
