In Q3, the company’s revenue fell 36%, the worst drop since its US listing in 2020
[HONG KONG] Li Auto’s fourth quarter forecasts fell short of expectations, adding to investor concerns about its ability to navigate China’s fiercely competitive electric vehicle (EV) market.
The Chinese carmaker expects revenue for the period to range between 26.5 billion (S$4.9 billion) and 29.2 billion yuan, based on a filing on Wednesday (Nov 26). The revenue missed analyst estimates of 37 billion yuan.
Its projected vehicle deliveries also fell short, with the guidance of 100,000 to 110,000 units in the fourth quarter missing an estimate of 135,633 units.
The disappointing outlook follows a tough third quarter in which the company’s revenue fall 36 per cent, the worst drop since the firm’s US listing in 2020.
Li Auto faced headwinds from supply chain bottlenecks and costs related to the recall of more than 11,000 of its Mega multi-purpose EV, while also navigating intensifying competition in the market, chief financial officer Tie Li said.
The recall was an unexpected blow and followed an incident in which one of its cars caught fire.
Investors have been pessimistic on the firm amid intensifying competition for its extended-range EV from its local peers.
Its Hong Kong-listed shares have tumbled more than 20 per cent this year and lost more than half of their value since an August 2023 peak.
Li Auto’s results echo similarly disappointing outlooks from Nio and Xpeng, pointing to a tough final quarter for China’s EV industry. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
