Tesla challenger Li Auto expects bumpy road ahead, as Shanghai lockdown snarls supply chains
- The electric vehicle start-up expects to ship up to 33.8 per cent fewer cars in the second quarter compared to the first three months of the year
- Covid-19 lockdowns in Shanghai and a major car production base in Jilin province have exacerbated a bottleneck in automotive supplies
Li Auto, the Chinese smart electric vehicle (EV) start-up, has forecast a sharp fall in its deliveries in the second quarter, as strengthened virus control and prevention measures further constrain the supply chain.
The Beijing-based rival to Tesla expects to ship between 21,000 to 24,000 vehicles from April to June, compared to 31,716 in the first quarter – representing a decline of between 24.3 per cent and 33.8 per cent.
“While the recent pandemic resurgence and associated supply-chain interruptions have been challenging for our industry, and uncertainty remains in the near future, we are confident of the resilience of our organisation,” Li Xiang, co-founder and CEO of Li Auto, said in a statement on Tuesday.
The company’s bearish forecast came after Tesla reported sales of 10,757 units in April, down 84 per cent from a month earlier.
Li Auto reported on Tuesday a net loss of 10.9 million yuan (US$1.6 million) in the first three months of the year, falling short of market expectations of a quarterly profit.
The gross margin of its vehicles increased slightly to 22.4 per cent in the same period, compared to 22.3 per cent in the last quarter of 2021 and 16.9 per cent a year earlier.
Guangzhou-based Xpeng Motors and Shanghai-headquartered Nio, Tesla’s two other Chinese challengers, have yet to publish their earnings for the first quarter.