Li Auto reported weaker-than-expected first-quarter earnings and guided low on the current quarter, as the once-hot China electric vehicle maker struggles with increased competition. Li Auto stock plunged Monday.
XPeng reports Q1 results early Tuesday. XPEV stock rose before the open, along with Nio and newly public Zeekr. China EV and battery giant BYD flashed a buy signal late last week. Tesla tilted higher.
Li Auto Earnings
Li Auto earned 17 cents per U.S. ADR, down 10.5% vs. 19 cents a year earlier. Wall Street had expected 24 cents. Revenue grew 36% vs. a year earlier to $3.6 billion, modestly meeting.
As previously disclosed, Li Auto delivered 80,400 vehicles in Q1, up 53% vs. a year earlier but down 39% vs. Q4. The decline vs. Q4 reflected typical softness in China auto sales around Lunar New Year holidays, but also weak March orders.
The Mega minivan, Li's first fully battery electric vehicle (BEV), has seen poor demand. The bulk of Li's sales come from SUV line of extended range EVs, essentially a form of plug-in hybrid.
On the earnings call, Li Auto now says it will not release any all-electric SUVs in 2024, a shift. It'll release those vehicles in the first half of 2025.
Li Auto expects Q2 deliveries of 105,000-110,000 vehicles, up 21%-27% vs. year earlier earlier, but below analyst estimates. Li already delivered 25,787 vehicles in April, so the Q2 guidance assumes May-June deliveries of 79,213-84,213.
Revenue should be $4.1 billion-$4.3 billion, up 4%-9% vs. a year earlier. Analysts had expected $5.17 billion.
In recent weeks, Li Auto announced hefty price cuts on all its vehicles, except for the brand-new L6 SUV, its smallest and most-affordable vehicle.
Earlier this month, the EV maker announced it would lay off more than 18% of its workforce.
Li Auto Stock
Li Auto stock plunged 12.8% to 21.71, knifing below the 52-week low of 23.04 set on April 25. Last week, LI stock fell 6.7% to 24.89.
XPeng Stock
XPeng stock edged down 0.2% to 8.28, just above the 50-day line. Early Tuesday, XPeng is expected to a report a 33-cent loss per U.S. ADR vs. a 38-cent loss a year earlier. Revenues should jump nearly 50% to $857 million.
Other EV Stocks
Nio stock sank 1.1% to 5.22 on Monday, continuing to hold above the 50-day line but well below its 200-day. Shares climbed 4.1% last week. Nio earnings are due May 29. Last week, Nio formally unveiled the first model from its more-affordable Onvo brand. The L60 crossover is a new Model Y rival.
Zeekr stock popped 4.3% to 27.11. Zeekr, a China EV brand of auto giant Geely, came public in the U.S. earlier this month at 21 a share. ZK stock jumped to 29.36 intraday on May 13, but then pulled back.
BYD stock, which trades over the counter in the U.S., closed flat. Shares rose 1.2% to 28.73 last week, holding support at the 200-day line, and breaking a downtrend in a handle, offering an early entry. Investors could view the recent action as a high handle to a short consolidation or a traditional handle to a base going back to late 2023. Either way, the official buy point is 29.52.
Tesla stock fell 1.4% to 174.95 Monday. Shares rallied 5.3% last week, rebounding from the 50-day line. Tesla faces growing competition from Xiaomi, Nio and BYD in China.
Please follow Ed Carson on X/Twitter at @IBD_ECarson and Threads at @edcarson1971 for stock market updates and more.
