Li Auto Inc (NASDAQ:LI) stock fell 8.77% (As on August 8, 11:35:57 AM UTC-4, Source: Google Finance) after the company raised its revenue guidance and said it expects to deliver more than 100,000 vehicles in the third quarter after reporting better-than-expected quarterly results. Vehicle sales increased 229.7% to $3.86 billion, mainly attributable to the increase in vehicle deliveries. Total vehicle deliveries were 86,533 units in Q2, a 201.6% year-on-year increase. The vehicle margin was flattish Y/Y at 21.0%, while the gross margin was flattish Y/Y at 21.8%. Non-GAAP income from operations was $281.8 million. Li Auto held cash and equivalents of $10.17 billion. Cash provided by operating activities was $1.53 billion, up 884% Y/Y. As of June 30, 2023, the company had 331 retail stores covering 127 cities, 323 servicing centers, and Li Auto-authorized body and paint shops operating in 223 cities. In July 2023, the company delivered 34,134 vehicles, representing an increase of 227.5% from July 2022. Non-GAAP net income was RMB2.73 billion (US$376.1 million) in the second quarter of 2023, compared with RMB183.4 million non-GAAP net loss in the second quarter of 2022 and an increase of 92.9% from RMB1.41 billion non-GAAP net income in the first quarter of 2023. Free cash flow was RMB9.62 billion (US$1.33 billion) in the second quarter of 2023, compared with RMB451.7 million free cash flow in the second quarter of 2022 and representing an increase of 43.6% from RMB6.70 billion free cash flow in the first quarter of 2023.-

LI in the second quarter of FY 23 has reported the adjusted earnings per share of RMB2.18, beating the analysts’ estimates for the adjusted earnings per share of RMB1.72. The company had reported the adjusted revenue growth of 228.1 percent to RMB28.65 billion in the second quarter of FY 23, beating the analysts’ estimates for revenue of RMB26.61 billion. Gross profit was RMB6.24 billion (US$859.9 million) in the second quarter of 2023, representing an increase of 232.0% from RMB1.88 billion in the second quarter of 2022 and an increase of 62.8% from RMB3.83 billion in the first quarter of 2023.  Gross margin was 21.8% in the second quarter of 2023, compared with 21.5% in the second quarter of 2022 and 20.4% in the first quarter of 2023.

Li Auto sees Q3 FY23 revenue of $4.46 billion – $4.59 billion (consensus $3.9 billion), representing an increase of 246.0% – 256.4% Y/Y. LI expects Q3 vehicle deliveries of 100,000 – 103,000, representing an increase of 277.0% – 288.3% Y/Y.