Key Takeaways
- Li Auto reported total revenues of $3.6 billion for Q1 2024, with vehicle deliveries reaching 80,400 units, marking a 52.9% year-over-year increase.
- Li Auto delayed the release of three all-electric SUV models to the first half of 2025 due to an insufficient fast-charging network in China.
- Li Auto revised its Q1 2024 delivery outlook to 76,000–78,000 vehicles, down from the previous estimate of 100,000–103,000 units, due to lower-than-expected order intake and strategic missteps with the Li MEGA model.
Li Auto Inc., a prominent player in China’s burgeoning new energy vehicle (NEV) market, recently unveiled its financial results for the first quarter of 2024. Amidst a landscape of intense competition and rapid technological evolution, Li Auto’s latest earnings call and financial disclosures offer valuable insights into the company’s current standing and its strategic direction moving forward.
Q1 2024 Financial Highlights
The first quarter of 2024 was a significant period for Li Auto. The company reported total revenues of $3.6 billion, a testament to its robust growth trajectory. This period also saw the company deliver 80,400 vehicles, a 52.9% year-over-year increase, setting the stage for the strategic initiatives to follow.
However, the company faced some financial challenges. The operating margin was negative 2.3% in Q1 2024, compared to 2.2% in Q1 2023.Net income was $81.9 million, representing a decrease of 36.7% from $128.9 million in Q1 2023.
Strategic Adjustment and Future Outlook
Despite the positive financial outcomes, the first quarter of 2024 had challenges for Li Auto. The company faced multiple hurdles due to changing internal and external environments, leading to performance that fell short of initial expectations.
Delay in Launch of New Models Due to Lack of Fast Charging in China
A significant development in Li Auto’s strategy is its decision to delay the release of three all-electric SUV models to the first half of 2025, a shift from the previously announced timeline of the second half of 2024. This delay has been attributed to the insufficient fast-charging network in China, which is crucial for these electric vehicles’ effective deployment and user experience.
AD Max 3.0 – Beta Testing
Li Auto is set to embark on a 1,000-person-scale public beta test of its AD Max 3.0 driver assistance software, with plans for a broader rollout via an OTA upgrade in the third quarter of this year. This significant move underscores Li Auto’s unwavering commitment to technological innovation and its ambitious drive to lead in the smart vehicle domain.
New Model Launches
Li MEGA
In March 2024, Li Auto launched and commenced delivery of Li MEGA, its high-tech flagship family MPV. Built on an 800-volt battery-electric platform, Li MEGA is equipped with the Qilin 5C battery and can achieve a driving range of 500 kilometers with a 12-minute charge using Li Auto 5C super charging stalls.
Regarding vehicle intelligence, its Li SS Ultra smart space and Li AD Max autonomous driving systems are powered by a high-performance Qualcomm Snapdragon 8295P chip and dual NVIDIA DRIVE Orin-X chips.
2024 Li L Series
In April 2024, Li Auto launched and commenced delivery of the Li L6, a five-seat premium family SUV built with the latest generation of lithium iron phosphate batteries. The Horizon Robotics Journey 5-powered Li AD Pro autonomous driving system is a standard feature of the Li L6 Pro variant. On the other hand, the Li AD Max trim variant comes standard with the Li AD Max autonomous driving system which uses dual NVIDIA DRIVE Orin-X chips.
Business Outlook
For the second quarter of 2024, Li Auto expects:
- Vehicle deliveries are between 105,000 and 110,000, representing an increase of 21.3% to 27.1% from the second quarter of 2023.
- Total revenues are expected to be between $4.1 billion and $4.3 billion, representing an increase of 4.2% to 9.4% from the second quarter of 2023
EVoltronic Insights
Li Auto’s Q1 2024 financial results and strategic initiatives paint a picture of a company that is not only navigating the complexities of the NEV market with agility but is also laying the groundwork for sustained growth.
While the delay in releasing its all-electric SUVs may be seen as a setback, it also reflects Li Auto’s dedication to quality and strategic foresight. With a solid financial foundation, a commitment to innovation, and a clear vision for the future, Li Auto is well-positioned to continue its growth trajectory and play a leading role in the evolution of the NEV sector.
