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Li Auto (LI) Is About to Report Q1 Earnings. Here's What to Expect

Li Auto (LI) Is About to Report Q1 Earnings. Here's What to Expect

Globe and Mail29-05-2025
Chinese EV (electric vehicle) maker Li Auto (LI) is scheduled to announce its results for the first quarter of 2025 on Thursday, May 29, 2025. Li Auto stock has risen 20.5% year-to-date, driven by the company's resilient performance despite intense competition and macro challenges in China. Analysts expect Li Auto's Q1 EPS to fall to RMB 0.64 from RMB 1.21 in the prior-year quarter. Further, revenue is expected to decline by 1.5% year over year. While price wars and growth investments are expected to weigh on the company's results over the short term, many analysts are optimistic about Li Auto due to its strong supercharging network, continued innovation, and solid fundamentals.
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Ahead of the Q1 results, there have been reports that Li Auto recently cut its 2025 delivery target to 640,000 vehicles from the previous target of 700,000 units amid intense competition and lower-than-anticipated demand for the revamped L6 crossover.
While Li Auto's Q1 deliveries increased by 15.5% year-over-year to 92,864 units, the chart below from Main Street Data indicates a slowdown in the growth rate compared to 20.4% in Q4 2024.
Analysts' Views Ahead of Li Auto's Q1 Earnings
In a preview note on Q1 results of Chinese EV makers, JPMorgan analyst Nick Lai stated that earlier this year, he upgraded Li Auto stock to Buy on the belief that its new models, i8 (July), i6 (around the Guangzhou Auto Show time in November) and i7 (JPMorgan estimates launch in first half of 2026), will drive a turnaround in sales in the BEV (battery electric vehicle) segment, a view which the 4-star analyst said is unchanged.
Lai noted that year-to-date, Li Auto stock has moved largely in line with the HSCEI (Hang Seng China Enterprises Index). That said, given rising competition in the large-SUV space at the Shanghai auto show from players like Huawei, Changan Auto, Lynk, and BYD (BYDDF) and the need to invest in research & development, Lai lowered his 'previously more bullish' forecasts for 2025/26 by about 20-30%. He believes that Q1 2025 will mark the bottom for Li's financial performance this year. Lai reiterated a Buy rating on Li Auto stock but lowered the price target to $33 from $40.
Options Traders Anticipate a Notable Move on Li Auto's Q1 Earnings
Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about a 10% move in either direction in LI stock in reaction to Q1 results.
Is Li Auto Stock a Buy, Sell, or Hold?
Overall, Wall Street has a Moderate Buy consensus rating on Li Auto stock based on six Buys and four Holds. The average LI stock price target of $33 implies about 14.2% upside potential.
See more LI analyst ratings
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