China’s Li Auto expects to cover losses in Q4
2022.12.09 04:42
China’s Li Auto expects to cover losses in Q4
Budrigannews.com – On Friday, China’s Li Auto Inc. predicted an increase in vehicle deliveries and revenue for the fourth quarter, relying on improved cost control and a production ramp-up.
For the third quarter that ended on September 30, the manufacturer of electric vehicles reported a net loss of 1.65 billion yuan, or $237.55 million, compared to a loss of 21.5 million yuan a year earlier.
Although the majority of automakers have been impacted by rising material costs and a chip shortage worldwide, Li Auto stated that it was anticipating increased deliveries and production scale-up as global supply chain issues improved.
Xpeng, a rival (NYSE:) NASDAQ: Nio and Inc. In addition, Inc reported larger losses as a result of rising inflation.
Friday, Li Auto stated that it anticipates delivering between 45,000 and 48,000 vehicles in the fourth quarter, an increase of up to 36.3% from the previous year. Revenues are also anticipated to rise by as much as 658.8% to between 16.51 billion yuan ($2.38 billion) and 17.61 billion yuan.
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Tie Li, the chief financial officer of the automaker, stated, “Looking forward, we are optimistic that with rapid production ramp-up, rigorous execution, and responsible cost management, we will realize greater economies of scale and further drive down costs, putting us back on track to hit our profitability inflection point.”
The company saw a 22.5 percent increase in vehicle sales to 9.05 billion yuan in the reported quarter, despite a 21.1 percent decrease in margins.
In the September quarter, it shipped 26,524 cars, with over 25,000 cars shipped in October and November.
