Li Auto (LI, Financial) announced its revenue for the first quarter at $3.6 billion, driven by total deliveries of 92,864 vehicles, marking a 15.5% increase compared to the same period last year. The company maintained its lead in the NEV market segment for vehicles priced at RMB200,000 and above, thanks to the value it offers to its consumers.
The recent update to Li Auto's product lineup has spurred a significant increase in orders, especially for the new Li L series. These vehicles have quickly gained market acclaim for their robust features. Meanwhile, the Li MEGA Home has furthered Li Auto's mission of crafting a "Mobile Home" focused on user happiness.
Looking ahead, Li Auto is preparing for the July debut of its first battery electric SUV, the Li i8, aiming to solidify its standing in China's premium BEV market. The company's innovative assisted driving solution, VLA Driver, signifies its commitment to advancing vehicle-user interaction through cutting-edge technology. Li Auto continues to push technological boundaries to enhance the overall user experience.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 26 analysts, the average target price for Li Auto Inc (LI, Financial) is $32.72 with a high estimate of $44.89 and a low estimate of $19.98. The average target implies an upside of 17.28% from the current price of $27.90. More detailed estimate data can be found on the Li Auto Inc (LI) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, Li Auto Inc's (LI, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Li Auto Inc (LI, Financial) in one year is $81.50, suggesting a upside of 192.11% from the current price of $27.9. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Li Auto Inc (LI) Summary page.
LI Key Business Developments
Release Date: March 14, 2025
- Total Revenue (Q4 2024): RMB44.3 billion (USD6.1 billion), up 6.1% year-over-year and 3.3% quarter-over-quarter.
- Vehicle Sales Revenue (Q4 2024): RMB42.6 billion (USD5.8 billion), up 5.6% year-over-year and 3.2% quarter-over-quarter.
- Gross Profit (Q4 2024): RMB9 billion (USD1.2 billion), down 8.3% year-over-year and 2.8% quarter-over-quarter.
- Vehicle Margin (Q4 2024): 19.7%, compared to 22.7% in Q4 2023 and 20.9% in Q3 2024.
- Gross Margin (Q4 2024): 20.3%, compared to 23.5% in Q4 2023 and 21.5% in Q3 2024.
- Operating Expenses (Q4 2024): RMB5.3 billion (USD721.6 million), down 22% year-over-year and 9.1% quarter-over-quarter.
- R&D Expenses (Q4 2024): RMB2.4 billion (USD329.9 million), down 31% year-over-year and 6.9% quarter-over-quarter.
- SG&A Expenses (Q4 2024): RMB3.1 billion (USD421.5 million), down 5.9% year-over-year and 8.4% quarter-over-quarter.
- Income from Operations (Q4 2024): RMB3.7 billion (USD507.4 million), up 22% year-over-year and 7.9% quarter-over-quarter.
- Operating Margin (Q4 2024): 8.4%, improved from 7.3% in Q4 2023 and 8% in Q3 2024.
- Net Income (Q4 2024): RMB3.5 billion (USD484 million), down 38.6% year-over-year and up 25.3% quarter-over-quarter.
- Cash on Hand (End of 2024): RMB112.8 billion (USD15.5 billion).
- Net Cash from Operating Activities (Q4 2024): RMB8.7 billion (USD1.2 billion).
- Free Cash Flow (Q4 2024): RMB6.1 billion (USD830.1 million).
- Vehicle Deliveries (Q4 2024): Over 158,000 vehicles.
- Full Year Deliveries (2024): Over 500,000 vehicles.
- Retail Stores (End of February 2025): 500 stores in 150 cities.
- Supercharging Stations (End of 2024): Over 1,900 stations with over 10,000 charging stalls.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Li Auto Inc (LI, Financial) achieved a record quarterly delivery of over 158,000 vehicles in Q4 2024, with full-year deliveries exceeding 500,000 units.
- The company reported total revenues of RMB44.3 billion in Q4 2024, contributing to a full-year total of RMB144.5 billion.
- Li Auto Inc (LI) has a strong cash position with RMB112.8 billion on hand, supporting long-term investments in electrification and AI.
- The company is expanding its supercharging network, aiming for 2,500 stations by the launch of its first battery electric SUV, Li i8.
- Li Auto Inc (LI) is advancing its overseas expansion, with a new R&D center in Munich and service centers in Kazakhstan, Dubai, and Uzbekistan.
Negative Points
- The vehicle margin decreased to 19.7% in Q4 2024 from 22.7% in the same period last year, due to a different product mix and interest subsidies.
- Gross margin also declined to 20.3% in Q4 2024 from 23.5% in the same period last year.
- Net income in Q4 2024 was down 38.6% year-over-year, despite a quarter-over-quarter increase.
- The company expects a year-over-year decrease in Q1 2025 total revenue, reflecting a challenging market environment.
- Li Auto Inc (LI) faces intense competition in the NEV market, with a focus on autonomous driving and AI advancements.
