Li Auto’s U.S.-listed shares declined about 1% in pre-market trading on Thursday after the Chinese electric vehicle manufacturer reported second-quarter results that missed earnings expectations despite beating revenue estimates.
The company posted revenue of 25.67 billion yuan for the quarter, narrowly exceeding the 25.07 billion yuan consensus forecast. However, net loss per share widened to 1.49 yuan, slightly below the projected loss of 1.47 yuan.
Li Auto’s outlook for the third quarter suggests continued pressure, with revenue guidance ranging between 26.60 billion yuan and 28.00 billion yuan. This forecast falls well short of the 32.28 billion yuan average estimate from analysts, underscoring weaker-than-expected demand in China’s premium EV segment.
Operational metrics reflected the softening trend. Vehicle margin contracted sharply to 9.4%, down from 19.4% in the same period last year, while total deliveries declined 11.5% year-over-year to 98,330 units. The company’s stock has fallen roughly 45% over the past 12 months and is trading near its 52-week low of $11.65.
The broader market context indicates that Li Auto’s decline is company-specific rather than a reflection of broader risk aversion. While the Nasdaq traded slightly lower and the S&P 500 remained flat, peers such as NIO and XPeng have also faced challenges amid China’s weak macroeconomic environment and elevated oil prices, which have weighed on car sales across the sector.
Li Auto’s shares are listed on both the Nasdaq and the Hong Kong stock exchange under the ticker LI.
