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Li Auto Falls as Operations Double Losses, Adjusted EPS Disappoints

Published 30/08/2021, 16:46
© Reuters
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By Dhirendra Tripathi

Investing.com – Li Auto stock (NASDAQ:LI) fell 4% Monday as the electric vehicle maker’s operations more than doubled their losses during the quarter from April through June and the company referred to semiconductor shortages in its business outlook for the ongoing quarter.

The company’s operating loss during the second quarter came in at RMB 365.5 million ($56.6 million), up 107% year-on-year.

Adjusted net loss was much lower but the adjusted loss per share disappointed analysts.

Total revenue rose more than two-and-a-half times to RMB 5039 million from RMB 1947.2 million.

But the jump in revenue was negated by a 142% rise in total cost of sales and nearly 242% increase in total operating expenses.

The company delivered 17,575 vehicles during the quarter, a 166% increase over a year earlier.

For the ongoing quarter, the company expects total revenue to be between RMB 6.98 billion ($1.08 billion) and RMB 7.25 billion ($1.12 billion), an increase of 178% to 189% from the third quarter of 2020.

It expects to deliver between 25,000 and 26,000 vehicles in the September quarter, an increase of 189% to 200% year-on-year.

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