Li Auto cuts vehicle delivery guidance for Q1, shares slide By Investing.com
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© Reuters Li Auto (LI) cuts vehicle delivery guidance for Q1, shares slide
Shares of Li Auto (NASDAQ:) fell more than 7% in U.S. premarket trading Thursday after the carmaker reduced its vehicle deliveries guidance for the fiscal Q1.
Citing “lower-than-expected order intake,” the company now expects to deliver between 76,000 and 78,000 vehicles in the first quarter, a decrease from its previous forecast of 100,000 to 103,000 units. This adjustment is also notably below the analyst estimates of 107,834 vehicles.
The carmaker’s CEO Xiang Li highlighted several key challenges the company faced in March.
“First, we want to acknowledge that the operating strategy of Li MEGA was mis-paced. We planned operations of Li MEGA as if the model had already entered the 1-to-10 scaling phase, while in fact, we were still in the nascent 0-to-1 business validation period,” he said.
“Similar to Li ONE and our EREV technologies, Li MEGA and our BEV technologies will also need to undergo this 0-to-1 validation process.”
Li also noted that the company had overly focused on sales volume and competition, which diverted attention from its strengths — delivering value to its users and ensuring operational efficiency.
As a result, Li Auto plans to adjust its delivery forecasts downward and focus on restoring “sustainable growth by refocusing on enhancing user value instead of competition,” all while preserving operational efficiency.
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© Reuters Li Auto (LI) cuts vehicle delivery guidance for Q1, shares slide
Shares of Li Auto (NASDAQ:) fell more than 7% in U.S. premarket trading Thursday after the carmaker reduced its vehicle deliveries guidance for the fiscal Q1.
Citing “lower-than-expected order intake,” the company now expects to deliver between 76,000 and 78,000 vehicles in the first quarter, a decrease from its previous forecast of 100,000 to 103,000 units. This adjustment is also notably below the analyst estimates of 107,834 vehicles.
The carmaker’s CEO Xiang Li highlighted several key challenges the company faced in March.
“First, we want to acknowledge that the operating strategy of Li MEGA was mis-paced. We planned operations of Li MEGA as if the model had already entered the 1-to-10 scaling phase, while in fact, we were still in the nascent 0-to-1 business validation period,” he said.
“Similar to Li ONE and our EREV technologies, Li MEGA and our BEV technologies will also need to undergo this 0-to-1 validation process.”
Li also noted that the company had overly focused on sales volume and competition, which diverted attention from its strengths — delivering value to its users and ensuring operational efficiency.
As a result, Li Auto plans to adjust its delivery forecasts downward and focus on restoring “sustainable growth by refocusing on enhancing user value instead of competition,” all while preserving operational efficiency.
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