Insight into EV Sales in China: Li Auto Quarterly Numbers

Chinese electric vehicle maker Li Auto is set to report its quarterly numbers, with investors eagerly looking for guidance on third-quarter delivery figures. This data will give valuable insights into the trend of electric vehicle (EV) sales in China, a crucial market for Li, Tesla, BYD, and other EV manufacturers.

For the second quarter, Wall Street analysts are expecting Li Auto to report a loss of 3 cents per share from $1.3 billion in sales. This compares to a loss of 2 cents per share from $780 million in sales reported a year ago.

Despite the challenging conditions brought about by COVID-19 lockdowns in China during the second quarter of 2022, Li Auto managed to deliver an impressive 87,000 units during the same period in 2023 – a significant increase of over 200% from the previous year's figures of approximately 29,000 units.

In July, the first month of the third quarter, Li achieved a record-breaking delivery of 34,134 vehicles. Industry experts are expecting Li Auto to deliver over 90,000 units for the entire third quarter, indicating a quarter-to-quarter growth of around 5%. If this growth is realized, it would result in battery-electric vehicle sales remaining relatively flat year over year in China.

While flat sales may be perceived as disappointing, it is worth noting that the first and second quarters of this year saw a significant rebound in battery-electric vehicle sales. In the first quarter, sales rose by approximately 10% compared to the previous year, followed by a staggering 40% year-over-year increase in the second quarter.

Investors would welcome any year-over-year growth in the third quarter, and if Li Auto provides guidance close to 100,000 units for the quarter, it would instill confidence among investors.

Li Auto's management will discuss the guidance and earnings during a conference call scheduled for 8 a.m. Eastern Time.

The performance of Li Auto's American depositary receipts (ADRs), listed on the U.S. stock market, has been outstanding so far this year. With a year-to-date increase of 122%, Li Auto has significantly outperformed the S&P 500 and Nasdaq Composite, which have gained 18% and 34% respectively.