Li Auto Inc (NASDAQ:LI) stock fell 2.24% (As on November 10, 11:37:56 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 23. In Q3, Li Auto delivered a total of 105,108 units, representing a staggering YoY increase of 296.3%. As of the end of the quarter, Li Auto held a significant amount of cash and equivalents, totaling $12.13 billion. Moreover, the company generated $1.99 billion in cash from its operating activities. In October 2023, Li Auto achieved another milestone by delivering 40,422 vehicles, reflecting an impressive YoY increase of 302.1% compared to October 2022. As of September 30, 2023, Li Auto boasted an extensive retail network, with 361 stores spanning across 131 cities. Additionally, the company operated 318 servicing centers and authorized body and paint shops in 213 cities, further enhancing its customer support infrastructure.
Further, Unlike many local peers, the company has no immediate overseas expansion plans. The startup, however, is looking at driver-assist tech as a way to compete in China’s hot electric car market. The company plans to more than double the size of its research and development team for autonomous driving, from around 900 people to more than 2,500 by the end of 2025
LI in the third quarter of FY 23 has reported the adjusted earnings per ADS of $0.45, beating the analysts’ estimates for the adjusted earnings per ADS of $0.30. The company had reported 271.2 percent growth in the adjusted revenue to $4.75 billion in the third quarter of FY 23, beating the analysts’ estimates for revenue of $4.59 billion. The surge in revenue was primarily driven by a substantial increase in vehicle sales, which reached $4.61 billion, marking a growth of 271.6%. This rise was mainly attributed to the higher number of vehicle deliveries made during this period.
Looking ahead to the fourth quarter of fiscal year 2023, Li Auto anticipates a revenue range of $5.27 billion to $5.40 billion, outperforming the consensus estimate of $4.86 billion. This projection indicates a YoY growth rate of 117.9% to 123.1%. Furthermore, the company expects to deliver 125,000 to 128,000 vehicles in Q4, representing a substantial YoY increase of 169.9% to 176.3%.
In addition, Li Auto plans to begin delivering its first battery-only model in February 2024, the MEGA multi-purpose vehicle. The company said it’s planning three more battery-only vehicles for launch in the second half of next year.