Shares of Li Auto (LI) are trending down nearly 6% in pre-market trading at the time of writing, despite reporting a healthy beat for the third quarter. Adjusted earnings of $0.52 per ADS (American Depositary Shares) outpaced the consensus of $0.38 per ADS in Q3 FY24. Additionally, total revenues of $6.11 billion handily beat analysts’ estimates of $5.85 billion. In Q3 FY23, Li Auto reported adjusted earnings of $0.45 per ADS on total revenues of $4.75 billion.
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Li Auto also recorded robust vehicle delivery numbers. In Q3, the Chinese EV maker delivered 152,831 EVs, up 45.4% year-over-year and 40.75% on a sequential basis.
Li Auto’s Guidance Fails to Impress Investors
Li Auto expects Q4 vehicle deliveries between 160,000 and 170,000 units, representing a growth range of 21.4% to 29% year-over-year. On October 18, 2024, Li Auto reached the milestone of one million cumulative deliveries, becoming the first emerging new energy vehicle brand in China to surpass this benchmark.
Furthermore, Q4 sales are guided in the range of 43.2 billion yuan to 45.9 billion yuan. This represents a year-over-year increase in sales of between 3.5% and 10%. Meanwhile, Li Auto lowered its full-year Fiscal 2024 guidance multiple times during the year, putting a dent in investor confidence. Year-to-date, LI stock has lost 22.7%.
Is LI Stock a Buy Right Now?
Analysts remain divided on Li Auto’s stock trajectory. On TipRanks, LI stock has a Moderate Buy consensus rating based on five Buys versus four Hold ratings. The average Li Auto price target of $28.53 implies 1.4% downside potential from current levels.
All these ratings were given before Li Auto reported its Q3 results and could change after analysts revisit their views on the stock.
