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Chinese electric carmaker Li Auto Inc expects first-quarter revenue to come in as high as $2.7 billion as a revamped and expanded product lineup helps it win sales from rivals including Tesla Inc.
The Beijing-based auto manufacturer said revenue for the three months ending on March 31 should be between 17.5 billion yuan ($2.5 billion) to 18.5 billion yuan, according to a statement, more than the 16.5 billion yuan compiled by Bloomberg consensus estimates.
Li Auto also reported net income of 265.3 million yuan for the three months ended on December 31, falling short of analysts’ estimates of 359 million yuan. Revenue jumped 66% to 17.7 billion yuan versus the same period of 2021 as Li Auto’s more expensive L9 SUV pushed up shipments and contributed to higher selling prices. The market was looking for 17.6 billion yuan.
“We successfully executed our growth strategy in 2022, cementing our leadership in the family SUV segment while holistically strengthening our business across R&D, supply chain, direct sales and servicing network,†Chairman Li Xiang said.
Fitted with more compact batteries than its key rivals, Li Auto is also more resilient to the increasing cost of lithium. Lithium carbonate prices hit a record high in November. The company’s gross margin for the fourth quarter rose to 20.2% from 12.7% the quarter prior.
Li Auto, founded in 2015, has been concentrating on so-called “extended-range electric cars,†which use a gasoline engine to provide additional power for the electric motor and boost a vehicle’s driving range.
After the initial launch of the Li One in 2019, the company unveiled three products last year — all roomy SUVs designed for families and priced over 300,000 yuan. The basic version of Tesla’s Model Y SUV starts at 261,900 yuan in China.
Upset by unexpected challenges in 2022, including Covid lockdowns and power cuts on top of an industrywide semiconductor shortage, Li Auto shipped 133,246 vehicles last year. Some 46,319 were delivered in the fourth quarter, in line with the carmaker’s earlier estimate of between 45,000 and 48,000 units.