Li Auto (LI) kicked off Monday with the announcement of robust fourth-quarter earnings, propelling LI stock to higher levels despite providing a somewhat conservative outlook for the first quarter.
The Chinese electric vehicle (EV) manufacturer reported earnings of 60 cents per American Depositary Share (ADS), a significant increase from 4 cents per ADS in the previous year. Revenue witnessed an impressive surge of 130%, reaching $5.88 billion, surpassing analyst projections. Market expectations were surpassed, with analysts forecasting earnings per ADS of 44 cents on revenue totaling $5.5 billion.
Highlighting its record-breaking performance, Li Auto revealed it had delivered a remarkable 131,805 vehicles in the quarter, with its budget-friendly EV, the L7, accounting for 40% of total deliveries.
For the first quarter, Li Auto anticipates revenue to range between $4.4 billion and $4.53 billion, representing a year-over-year increase of 66%-71% in local currency terms. However, this guidance fell slightly below analyst forecasts. Deliveries are projected to reach 100,000-103,000 vehicles, marking a substantial increase from the previous year but a slight decline from the record-breaking figures seen in the fourth quarter.
While January deliveries soared by 106% compared to the previous year, they experienced a sequential decline of 38% from December, attributed to the typically subdued auto sales environment in China during the January-February period due to the extended China New Year holiday.
Li Auto is set to unveil its first fully battery electric vehicle (BEV), the Mega MPV, on March 1, expanding its product lineup beyond its current premium SUV offerings. The company also plans to introduce updated versions of its existing models and launch additional BEV models later in the year, aiming to capitalize on the growing demand for electric vehicles in the Chinese market.
