Li Auto Expected to Post Q1 Net Loss Amid Revenue Decline

Li Auto to Report Q1 Earnings on Thursday

Chinese electric vehicle maker Li Auto is scheduled to release its first-quarter financial results on Thursday. Analysts expect the company to post a net loss of 2.4 billion yuan ($353.6 million), compared with a net profit of 650.3 million yuan a year earlier.

Revenue Expectations and Stock Performance

Li Auto's total revenue for the first quarter is forecast at 23.25 billion yuan, down 10% year-over-year. The company's Hong Kong-listed shares rose 4.4% in the quarter, partly driven by its share buyback plan.

Focus on Margins

Bernstein analysts expect a challenging quarter with vehicle gross margin of only 5%. The sequential deterioration is attributed to reduction in L-series plug-in hybrid inventories, purchase tax subsidies, additional discounts, and rising material costs, primarily from lithium batteries.

Q2 Guidance and New Models

Investors will closely watch the company's guidance for second-quarter deliveries and revenue. HSBC Global Research analysts note that planned vehicle launches may improve the trading backdrop next quarter, but it remains uncertain whether Li Auto can convert the current product cycle into sustained gains in volume, mix, and profitability.