Chinese EV Maker Li Auto Misses Q1 Revenue Expectations Despite Surging Vehicle Sales, Stock Tanks
Portfolio Pulse from Anusuya Lahiri
Li Auto Inc (NASDAQ:LI) reported Q1 2024 revenue growth of 36.4% YoY to $3.55 billion, missing the analyst consensus estimate of $3.84 billion. Adjusted net earnings per ADS were $0.17, below the expected $0.35. Despite a 32.3% increase in vehicle sales, the stock price dropped. The company sees Q2 2024 revenue of $4.1 billion – $4.3 billion and expects vehicle deliveries of 105,000 – 110,000. Li Auto stock lost over 15% in the last 12 months. Investors can gain exposure via VanEck Low Carbon Energy ETF (NYSE:SMOG) and First Trust Long/Short Equity (NYSE:FTLS).
May 20, 2024 | 11:23 am
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NEGATIVE IMPACT
First Trust Long/Short Equity (NYSE:FTLS) may experience minor fluctuations due to its exposure to Li Auto, which missed Q1 revenue and earnings estimates.
FTLS has some exposure to Li Auto, and the missed Q1 revenue and earnings estimates of Li Auto could cause minor fluctuations in the ETF's performance.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 20
NEGATIVE IMPACT
Li Auto missed Q1 revenue and earnings estimates despite a significant increase in vehicle sales. The stock price dropped as a result.
The company's revenue and earnings per ADS both missed analyst expectations, which typically leads to a negative market reaction. Despite strong vehicle sales, the stock price dropped, indicating investor disappointment.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
VanEck Low Carbon Energy ETF (NYSE:SMOG) may see a slight impact due to its exposure to Li Auto, which reported disappointing Q1 results.
SMOG has exposure to Li Auto, and the disappointing Q1 results of Li Auto could negatively impact the ETF's performance in the short term.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 30