Li Auto sees net income fall in Q1, guidance for Q2 misses expectations
Li Auto Q1 Earnings Plunge: What's Next?
Li Auto reported a substantial decline in net income and revenue for Q1, with a notable decrease from the previous quarter due to seasonal factors and lower-than-expected orders. The company's guidance for Q2 vehicle deliveries and revenue also fell short of Wall Street expectations, projecting lower figures than anticipated.
Despite a 52.9% year-on-year increase in Q1 vehicle deliveries, Li Auto's net income and vehicle margin saw significant reductions compared to both the previous year and the last quarter of 2023. The company attributes these declines to changes in pricing strategy and adjustments in warranty reserves, alongside increased spending on research and development.
How many vehicles does Li Auto expect to deliver in May and June, based on their second-quarter guidance?
Li Auto expects to deliver between 79,213 and 84,213 vehicles in May and June, based on their second-quarter guidance. This estimate follows from their overall second-quarter delivery forecast of 105,000 to 110,000 vehicles, considering that they reported delivering 25,787 vehicles in April. Hence, the remaining vehicles to meet the quarterly forecast are projected to be delivered in the months of May and June.
What was the reported revenue for Li Auto in the first quarter of 2024, and how does it compare to the same period last year?
Li Auto reported a revenue of RMB 25.6 billion yuan ($3.6 billion) for the first quarter of 2024. This figure aligns closely with analysts' estimates, which predicted a revenue of about 25.58 billion yuan. Comparatively, this revenue marks a substantial increase of 36.4 percent from the RMB 18.8 billion reported in the same period the previous year. This growth indicates a strong year-on-year performance in terms of revenue, despite the challenges faced by the company.