Li Auto Inc (NASDAQ:LI) on Thursday reported second-quarter earnings that missed analyst expectations, with shares falling about 4% as the Chinese electric vehicle maker issued a disappointing outlook for the third quarter.
The company posted adjusted earnings of RMB1.37 ($0.19) per ADS for the quarter ended June 30, 2025, falling short of analyst estimates of RMB1.81.
Revenue came in at RMB30.2 billion ($4.2 billion), below the consensus forecast of RMB33 billion, representing a 4.5% decrease YoY despite vehicle deliveries increasing 2.3% to 111,074 units.
Li Auto’s third-quarter guidance particularly concerned investors, with the company projecting deliveries between 90,000 and 95,000 vehicles, representing a steep YoY decline of 37.8% to 41.1%.
Revenue is expected to fall between RMB24.8 billion and RMB26.2 billion, down 38.8% to 42.1% from the same period last year.
"In the second quarter, we remained focused on cost optimization and operational efficiency enhancement while navigating a dynamic market, achieving solid profitability that underscores our financial resilience and effective execution," said Tie Li, chief financial officer of Li Auto.
Despite the revenue decline, the company improved its vehicle margin to 19.4% from 18.7% in the year-ago quarter, while gross margin increased to 20.1% from 19.5%. Income from operations surged 76.7% YoY to RMB827 million ($115.4 million).
Li Auto expanded its product lineup in July with the launch of Li i8, a six-seat battery electric family SUV, as part of its strategy to strengthen its position in China’s premium BEV market.
The company maintained a strong cash position of RMB106.9 billion ($14.9 billion) as of June 30, though it reported negative free cash flow of RMB3.8 billion ($536.3 million) for the quarter.
Source :
https://www.investing.com/news/earnings/li-auto-shares-fall-as-q2-earnings-miss-estimates-outlook-disappoints-4214070
