Analyst Significantly Lowers Delivery, Profit Estimates For Nio Rival Li Auto: What You Should Know

Brokerage firm US Tiger Securities Inc on Tuesday appreciably lowered its second-quarter shipping and delivery, income, and profit estimates for electric powered auto maker Li Auto Inc (NASDAQ: LI).

The Li Automobile Analyst: US Tiger Securities analyst Bo Pei has managed a purchase ranking and a $40 price tag concentrate on on the U.S. shown, Beijing-headquartered Li Vehicle.

The Li Car Thesis: Li Auto’s deliveries in April had been strike noticeably final thirty day period because of to offer chain disruptions joined to COVID-19 connected lockdowns in China. 

Beijing-based Li Vehicle competes with community rivals Nio Inc (NYSE: NIO), Xpeng Inc (NYSE: XPEV) and world wide EV leader Tesla Inc (NASDAQ: TSLA).

“We are updating our design to replicate the current supply chain disruptions considering that late March brought on by COVID lockdowns in China,” Pei wrote in a note.

“In April, Li sent 4,167 Li One particular, down 62% month-on-month and the lowest stage because February 2021, as in excess of 80% of its suppliers are found in the Yangtze Delta region affected by the pandemic.”

Compared with rivals, Li Vehicle has just 1 model to sell and is operating on launching much more. Compared with Tesla, Li Automobile is somewhat more youthful and faces additional uncertainties. Its future EV lineup is not expected to be obtainable until 2023, and there is no assurance it will be as successful as the Li One.

See Also: Tesla Giga Shanghai Creation Rises To 80% On Easing COVID-19 Curbs

New Estimates: US Tiger Securities now estimates latest quarter deliveries to be 20,211 Li A single models, down by 42.5% above its before estimate. The brokerage also expects a wider loss for the a few months finished June 2022 to 14 cents per share, from five cents a share approximated previously. 

Earnings estimates for the next quarter have been reduced by 40% to $946.8 million.

For the whole calendar year, the brokerage estimates Li Automobile to deliver 144,577 electrical automobiles, 10% decrease than its preceding guidance.

Selling price Action: Li Auto closed 1.7% reduced at $22.93 on Tuesday.

Picture courtesy: Li Vehicle