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Key Takeaways
- Li Auto shares listed in the United States are falling Friday during intraday trading after the Chinese electric car manufacturer forecast a lower than estimated first-quarter sales figure.
- The company expects to have total revenues between 23.4 bn yuan ($3.2 billion) and 24 bn yuan ($24.7 bn), representing a drop of 8.7% – 3.5% from the previous year.
- The company competes in China against homegrown EV rivals Nio, BYD, and XPeng as well as Elon Musk's Tesla,
The U.S. listed shares of Li Auto are down around 3% on Friday intraday trading after the Chinese electric car manufacturer projected a lower than estimated first-quarter sales figure.
The company expects total revenue to be between $23.4 billion yuan and $24.7 billion yuan. This represents a drop of 8.7% – 3.5% from the previous year. Visible Alpha estimated revenue of 33.5 billion Yuan for the quarter.
Li Auto’s adjusted earnings per common share (EPS) for the fourth quarter was 10.04 yuan, compared to the 11.46 yuan in the same period of the previous year. Total revenues increased by 6.1% to reach 44.3 billion yuan.
The company competes against Elon Musk’s Tesla and its homegrown EV competitors Nio (NIO), BYD (XPENG), and XPeng. Reuters reported that the Chinese EV makers were locked in a price battle with their rivals, which impacted its earnings. Tesla is also looking to sell a cheaper version of its Model Y in China, starting next year. This is because the U.S. firm is struggling to maintain its market share.
Li Auto shares have lost over a quarter of value in the last year.
