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Wall Street Journal
6 days ago
- Automotive
- Wall Street Journal
Li Auto Posts Profit Rise, Slightly Higher Revenue
Li Auto's LI -1.20%decrease; red down pointing triangle net profit in the first quarter was better than expected but it guided for softer revenue growth ahead as it continues to face tough competition in China's overcrowded EV market. Net profit rose 9.7% to 650.3 million yuan, equivalent to $90.4 million, the Beijing-based automaker said Thursday, beating the 488.3 million yuan consensus estimate in a Visible Alpha poll. Revenue for the quarter edged up 1.1% to 25.93 billion yuan, just slightly ahead of analysts' expectations of 25.28 billion yuan. The company sold 92,864 vehicles during the period, in line with guidance of 88,000-93,000 vehicles. Its gross margin was virtually unchanged at 20.5% from 20.6% a year ago, and a tad higher than 20.3% in the fourth quarter. The Chinese automaker's American depositary receipts fell about 1.4% in premarket trading after the results. For the second quarter, Li Auto said it expects to deliver between 123,000 and 128,000 vehicles, and post revenue of 32.5 billion yuan to 33.8 billion yuan, up 2.5% to 6.7% from a year earlier. The results and tepid outlook come as the company continues to face stiff competition in its home market. Known for premium plug-in hybrids, Li Auto is one of a handful of profitable Chinese EV makers. Write to Jiahui Huang at
Wall Street Journal
21-05-2025
- Automotive
- Wall Street Journal
XPeng Narrows Loss as Revenue Surges, Sees Another Strong Quarter Ahead
Chinese EV maker XPeng XPEV -1.45%decrease; red down pointing triangle posted a sharply narrowed net loss and a significant rise in revenue for the first quarter, and expects another strong quarter to follow as it edges closer to profit. The Guangzhou-based carmaker said Wednesday that its net loss was 664.0 million yuan, equivalent to $92 million, in the first quarter compared with 1.37 billion yuan a year earlier. Total revenue more than doubled to 15.81 billion yuan from 6.55 billion yuan during the period, driven by strong sales, the company said. Its gross margin rose to 15.6% from 12.9% a year earlier and from 14.4% in the prior quarter. XPeng said it expects deliveries to rise sharply to 102,000-108,000 vehicles in the second quarter, and revenue to rise to between 17.5 billion yuan to 18.7 billion yuan. The company has stood out in China's competitive EV space thanks to its leading autonomous-driving technology and robust sales. High sales volumes have supported margins, bringing XPeng closer to profitability. The company has yet to post a profit since it was founded in 2014, but market consensus is that it will likely become profitable in the fourth quarter this year, analysts say. Write to Jiahui Huang at
Wall Street Journal
03-04-2025
- Automotive
- Wall Street Journal
China Says It Has Agreed to EV Tariffs Negotiations With EU
China's commerce ministry has said that China and the European Union have agreed to restart negotiations on electric-vehicle tariffs, coming hot on the heels of Trump's announcement of more tariffs. The Chinese Ministry of Commerce said at a press conference on Thursday that talks will start as soon as possible, and aim to foster a good environment for Chinese and European companies to invest and work together. That follows President Trump's announcement of an additional 34% tariff on Chinese goods and a 20% duty on EU goods. A separate 25% tariff on global automotive imports has also featured in the Trump administration's trade policy. Trade relations between Beijing and the EU have been tense for some time, with the trading bloc imposing higher tariffs on China-made EVs last year, setting a rate of 17.0% for BYD, 18.8% for Geely and 35.3% for SAIC. The three Chinese automakers challenged the tariffs at the Court of Justice of the European Union in January. Beijing and the EU held negotiations in November last year, discussing whether China could commit to minimum price requirements for EVs in lieu of the tariffs. Write to Jiahui Huang at
