Li Auto (LI, Financial) experienced a notable increase in option trading activity, with 11,072 call options changing hands, four times the anticipated volume. This surge led to a rise in implied volatility, which climbed over four points to reach 58.33%. Among the most active options were the weekly 31.5 calls and the July 32.5 puts, with these strikes collectively seeing nearly 4,200 contracts exchanged. The current Put/Call Ratio stands at 0.41. Investors are keeping an eye on the company as it prepares to report earnings on August 28th.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 27 analysts, the average target price for Li Auto Inc (LI, Financial) is $33.16 with a high estimate of $44.98 and a low estimate of $20.02. The average target implies an upside of 3.91% from the current price of $31.91. More detailed estimate data can be found on the Li Auto Inc (LI) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, Li Auto Inc's (LI, Financial) average brokerage recommendation is currently 2.1, 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 $72.72, suggesting a upside of 127.89% from the current price of $31.91. 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: May 29, 2025
- Total Revenue: RMB25.9 billion ($3.6 billion), up 1.1% year-over-year, down 41.4% quarter-over-quarter.
- Vehicle Sales Revenue: RMB24.7 billion ($3.4 billion), up 1.8% year-over-year, down 22.1% quarter-over-quarter.
- Gross Profit: RMB5.3 billion ($732.9 million), up 0.6% year-over-year, down 40.7% quarter-over-quarter.
- Gross Margin: 20.5%, compared to 20.6% in the same period last year and 20.3% in the prior quarter.
- Vehicle Margin: 90.8%, compared to 90.3% in the same period last year and 19.7% in the prior quarter.
- Operating Expenses: RMB5 billion ($695.5 million), down 14% year-over-year, down 4.2% quarter-over-quarter.
- R&D Expenses: RMB2.5 billion ($346.4 million), down 17.5% year-over-year, up 4.4% quarter-over-quarter.
- SG&A Expenses: RMB2.5 billion ($348.8 million), down 15% year-over-year, down 17.7% quarter-over-quarter.
- Income from Operations: RMB271.7 million ($37.4 million), compared to a loss of RMB584.9 million in the same period last year.
- Net Income: RMB646.6 million ($89.1 million), up 9.4% year-over-year, down 81.7% quarter-over-quarter.
- Diluted Net Earnings per ADS: RMB0.62 ($0.08), compared to RMB0.56 in the same period last year.
- Cash Position: RMB110.7 billion ($15.3 billion) as of March 1, 2025.
- Free Cash Flow: Negative RMB2.5 billion (negative $348.7 million), compared to negative RMB5.1 billion in the same period last year.
- Vehicle Deliveries: Over 92,000 vehicles in Q1 2025, a 15.5% increase year-over-year.
- Retail Stores: 500 stores in 151 cities as of April 30, 2025.
- Supercharging Stations: 2,350 stations with over 12,800 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) delivered over 92,000 vehicles in Q1 2025, marking a 15.5% year-on-year increase.
- The company achieved a 14.1% market share in the RMB200,000 and above NEV market in China, reinforcing its leadership position.
- Li Auto Inc (LI) launched the new Li MEGA and Li L Series, featuring advanced technologies like NVIDIA's Thor-U chip and AT LiDAR sensors.
- The company has built the largest urban highway supercharging network in China, with 2,350 supercharging stations and plans to expand to 4,000 by year-end.
- Li Auto Inc (LI) maintains a strong cash position with RMB110.7 billion ($15.3 billion) as of March 2025.
Negative Points
- Total revenues in Q1 2025 were down 41.4% quarter-over-quarter, primarily due to seasonal factors like the Chinese New Year holiday.
- The company's net income decreased by 81.7% quarter-over-quarter, despite a year-over-year increase.
- Free cash flow was negative RMB2.5 billion in Q1 2025, compared to positive RMB6.1 billion in the prior quarter.
- Li Auto Inc (LI) faces competitive pressure as competitors aggressively benchmark the L Series with competitive pricing and specifications.
- The company anticipates challenges in maintaining vehicle margins around 19% due to the transition to new models and production adjustments.
