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Li Auto (LI) Revises Guidance for First-Quarter Delivery
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Li Auto Inc. (LI - Free Report) revised its outlook for first-quarter 2024 delivery due to lower-than-expected order intake. The China-based automaker now estimates first-quarter vehicle delivery in the range of 76,000-78,000 units, down from the previous guidance of 100,000-103,000 units.
Per Xiang Li, chairman and CEO of Li Auto, the operational strategy of Li MEGA was misaligned. The company structured the operation of the model under the assumption that it had already transitioned into the 1-to-10 scaling phase, while it was in the early stages of the 0-to-1 business validation period.
Like the Li ONE and EREV technologies, Li Mega and BEV technologies need to go through the same 0-to-1 business validation period.
Subsequently, the company will focus on its core user group and target cities with higher purchasing power, reverting the Li MEGA strategy to the 0-to-1 phase initially. Later, the automaker will extend its reach to a wider user base and additional cities.
Instead of focusing on sales volume and competition, the company will emphasize on value creation for its users and driving operating efficiency. For these reasons, LI may have lowered its delivery expectations.
In the fourth quarter of 2023, the company reported earnings per American Depositary Share (ADS) of 49 cents, up from 4 cents reported in the year-ago quarter. It reported total fourth-quarter 2023 revenues of $5.88 billion, up from $2.56 billion reported in the year-ago quarter, due to higher year-over-year deliveries. Li Auto delivered 131,805 vehicles in the fourth quarter of 2023, up from 46,319 units in the year-ago quarter.
Li Auto’s China-based competitor, Nio Inc. (NIO - Free Report) , incurred a loss per ADS of 45 cents in the fourth quarter of fiscal 2023, narrower than the Zacks Consensus Estimate of a loss of 51 cents. NIO had reported a loss of 51 cents in the year-ago quarter. It posted revenues of $2.41 billion, which topped the Zacks Consensus Estimate of $2.29 billion and increased 3.4% year over year due to higher delivery volumes. NIO delivered 50,045 vehicles in the fourth quarter, up 25% year over year.
XPeng Inc. (XPEV - Free Report) incurred a loss per ADS of 21 cents in the fourth quarter of fiscal 2023, narrower than the loss of 40 cents in the year-ago quarter. The company posted revenues of $1.84 billion, which increased from $745.3 million reported in the corresponding quarter of 2022. XPeng delivered 60,158 vehicles in the fourth quarter, up from 22,204 units in the corresponding quarter of 2022.
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Li Auto (LI) Revises Guidance for First-Quarter Delivery
Li Auto Inc. (LI - Free Report) revised its outlook for first-quarter 2024 delivery due to lower-than-expected order intake. The China-based automaker now estimates first-quarter vehicle delivery in the range of 76,000-78,000 units, down from the previous guidance of 100,000-103,000 units.
Per Xiang Li, chairman and CEO of Li Auto, the operational strategy of Li MEGA was misaligned. The company structured the operation of the model under the assumption that it had already transitioned into the 1-to-10 scaling phase, while it was in the early stages of the 0-to-1 business validation period.
Like the Li ONE and EREV technologies, Li Mega and BEV technologies need to go through the same 0-to-1 business validation period.
Subsequently, the company will focus on its core user group and target cities with higher purchasing power, reverting the Li MEGA strategy to the 0-to-1 phase initially. Later, the automaker will extend its reach to a wider user base and additional cities.
Instead of focusing on sales volume and competition, the company will emphasize on value creation for its users and driving operating efficiency. For these reasons, LI may have lowered its delivery expectations.
In the fourth quarter of 2023, the company reported earnings per American Depositary Share (ADS) of 49 cents, up from 4 cents reported in the year-ago quarter. It reported total fourth-quarter 2023 revenues of $5.88 billion, up from $2.56 billion reported in the year-ago quarter, due to higher year-over-year deliveries. Li Auto delivered 131,805 vehicles in the fourth quarter of 2023, up from 46,319 units in the year-ago quarter.
Li Auto’s China-based competitor, Nio Inc. (NIO - Free Report) , incurred a loss per ADS of 45 cents in the fourth quarter of fiscal 2023, narrower than the Zacks Consensus Estimate of a loss of 51 cents. NIO had reported a loss of 51 cents in the year-ago quarter. It posted revenues of $2.41 billion, which topped the Zacks Consensus Estimate of $2.29 billion and increased 3.4% year over year due to higher delivery volumes. NIO delivered 50,045 vehicles in the fourth quarter, up 25% year over year.
XPeng Inc. (XPEV - Free Report) incurred a loss per ADS of 21 cents in the fourth quarter of fiscal 2023, narrower than the loss of 40 cents in the year-ago quarter. The company posted revenues of $1.84 billion, which increased from $745.3 million reported in the corresponding quarter of 2022. XPeng delivered 60,158 vehicles in the fourth quarter, up from 22,204 units in the corresponding quarter of 2022.