Li Auto Races Expectations with Triple-Digit Revenue Growth, Vehicle Deliveries Soar in Q3

Li Auto Inc LI reported third-quarter FY23 revenue growth of 271.2% year-on-year to $4.75 billion, beating the consensus of $4.59 billion. 

Adjusted earnings per ADS of $0.45 beat the consensus of $0.30.

Vehicle sales increased 271.6% to $4.61 billion, mainly attributable to the increase in vehicle deliveries.

Total vehicle deliveries were 105,108 units in Q3, a 296.3% year-on-year increase.

The vehicle margin grew by 920 bps Y/Y to 21.2%, while the gross margin expanded by 930 bps Y/Y to 22%. Non-GAAP income from operations was $410.3 million.

Li Auto held cash and equivalents of $12.13 billion. Cash provided by operating activities was $1.99 billion.

As of September 30, 2023, the company had 361 retail stores covering 131 cities, 318 servicing centers, and Li Auto-authorized body and paint shops operating in 213 cities.

In October 2023, the company delivered 40,422 vehicles, representing an increase of 302.1% from October 2022.

Outlook: Li Auto sees Q4 FY23 revenue of $5.27 billion - $5.40 billion (consensus $4.86 billion), representing an increase of 117.9% - 123.1% Y/Y.

LI expects Q4 vehicle deliveries of 125,000 – 128,000, representing an increase of 169.9% - 176.3% Y/Y.

Price Action: LI shares traded higher by 1.50% at $39.95 in premarket on the last check Thursday.