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Li Auto, Tesla’s top EV rival in China, eyes sales increase of up to 19 per cent as it reports record profit and revenue
- Beijing-based carmaker says third-quarter deliveries should reach 100,000 to 103,000 units
- Second-quarter profit jumps 147.4 per cent while revenue grows 52.5 per cent to 28.65 billion yuan (US$3.97 billion)
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Daniel Renin Shanghai
Li Auto, the nearest rival to Tesla in China’s premium electric vehicle (EV) segment, predicted its sales winning streak will extend during the third quarter of this year as a recovery in the battery-powered car industry gains traction.
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The Beijing-based carmaker said in a statement that deliveries between July and September should reach 100,000 to 103,000 units, up 15.6 to 19 per cent from the previous quarter.
The upbeat estimate surfaced as Li Auto beat analyst expectations by posting a record net profit of 2.31 billion yuan (US$320 million), or 2.34 yuan per share, in the three months ended June, a jump of 147.4 per cent from the first quarter. Revenue also hit an all-time high, growing 52.5 per cent to 28.65 billion yuan.
“Strong sales and improved gross margin will give Li Auto some impetus for higher profitability in the second half of 2023,” said a fund manager with Shanghai Shiva Investment. “Li Auto is leading several other Chinese premium EV makers to take on Tesla.”
Li Auto broke its monthly sales record for a third straight month in July. The company handed 34,134 vehicles to mainland customers last month, beating its previous record of 32,575 units in June.
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Tesla’s Gigafactory in Shanghai delivered 31,423 Model 3 and Model Y vehicles in China last month. But the Shanghai factory also exported 32,862 units to overseas markets like Germany and Japan in July, 68.8 per cent more than 19,468 vehicles it shipped abroad a month earlier.
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