Microvast Holdings announces departure of chief financial officer
On Thursday, Citi analyst Jeff Chung maintained a Neutral rating on Li Auto (NASDAQ:LI) shares with a consistent price target of $34.30. According to InvestingPro data, Li Auto’s stock has shown strong momentum with a 38% return over the past year, while currently trading at $28.89. The company’s analysis suggests it may be undervalued based on its Fair Value calculations, with analysts setting targets ranging from $27.05 to $40.08. Chung’s commentary followed Li Auto’s second quarter guidance for 2025, which included delivery targets ranging between 123,000 to 128,000 units, marking a year-over-year increase of 13.3% to 17.9%. Li Auto’s revenue forecast for the quarter is set at RMB 32.5 billion to RMB 33.8 billion, reflecting a growth of 2.5% to 6.7% compared to the same period last year.
The company’s vehicle margin for the second quarter is anticipated to be around 19%, slightly down from 19.8% in the first quarter. This adjustment is attributed to the transition period between old and new model deliveries. InvestingPro data shows Li Auto maintains strong financial health with a "GREAT" overall score of 3.29, supported by robust metrics including a healthy current ratio of 1.82 and more cash than debt on its balance sheet. Li Auto is gearing up for the launch of its i8 model in July 2025, which is currently undergoing nationwide road tests, and the i6 model is slated for a September 2025 release. The recent introduction of Li MEGA Home in April 2025 has already accounted for 90% of Li MEGA orders, demonstrating a strong order backlog.
Li Auto is expanding its production capacity to meet a monthly delivery target of 2,500 to 3,000 units for the Li MEGA by July 2025. The company is also upgrading its Li L-series and Li MEGA models with enhancements to its autonomous driving systems, transitioning from Nvidia (NASDAQ:NVDA) Orin X to Thor for AD Max and from Horizon Robotics J5 to J6M for AD Pro, which will include Hesai’s ATL lidar technology.
The company’s supercharging network has grown to 2,350 stations with 12,800 charging stalls as of the first quarter of 2025. Plans are in place to increase the number of stations to over 2,500 by June 2025 and to target 4,000 stations by the end of the year. Additionally, the in-house developed VLA Driver is set to launch alongside the Li i8 in July 2025 and will be rolled out to all AD Max Li-series through over-the-air updates.
Li Auto’s sales network expansion continues as it aims to penetrate lower-tier cities while maintaining a presence in major automotive parts and shopping malls. As of the first quarter of 2025, the company boasts 500 retail stores across 151 cities and 502 service centers in 223 cities.
In addressing how to achieve the 2025 growth target, which includes doubling the RMB 200,000+ new energy vehicle (NEV) market growth, management expressed confidence in the sales performance of the upgraded L-series, which currently exceeds 10,000 units in weekly sales and has captured a 14.7% market share in the RMB 200,000+ price segment. The company’s financial performance supports this ambition, with InvestingPro reporting revenue growth of 16.64% over the last twelve months and a healthy gross profit margin of 20.53%. Investors seeking deeper insights can access Li Auto’s comprehensive Pro Research Report, along with detailed analysis of 1,400+ other top stocks, through an InvestingPro subscription. They anticipate reaching over 50,000 monthly sales for the new L-series in the near future.
In other recent news, XPeng (NYSE:XPEV) reported a significant increase in vehicle deliveries for April, with figures nearly tripling compared to the same period last year, reaching 35,045 units. Li Auto also announced a positive performance, with sales rising 32% to 33,939 vehicles in April, maintaining its lead in the SUV market priced above CNY200,000. Zeekr Group, formed after the merger of Zeekr and Lynk&Co, delivered a total of 41,316 vehicles in April. Xiaomi (OTC:XIACF), a newcomer in the market, reported over 28,000 units delivered for the same month. Meanwhile, Li Auto also saw a 27% annual increase in March vehicle deliveries, totaling 36,674 units, contributing to a strong first quarter performance.
In a separate development, Li Bang International Corp Inc. appointed Lianyong Song as the new Chair of the Audit Committee following the resignation of Scott Silverman. Song brings extensive auditing experience to the role, having worked with firms like Deloitte Hua Yong CPA Firm. Additionally, the U.S. automotive industry is set to face challenges with the introduction of a 25% tariff on imported vehicles and parts, potentially affecting companies like Ford and General Motors (NYSE:GM). However, Tesla (NASDAQ:TSLA) is expected to remain resilient due to its localized production. European automakers, such as Volvo (OTC:VLVLY) Cars, may experience significant profitability impacts due to these tariffs.
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