Banking

Li Auto Cuts Delivery Outlook But Still Expects To Outsell Nio

Li Auto (LI) cuts its EV delivery forecast for the third quarter, joining Nio (NIO) which cited pandemic-fueled headwinds from the chip shortage. In Monday trading, Li Auto stock fell, along with EV rivals.




X



Li Auto Joins Nio With Lower Q3 Delivery Outlook

For the current third quarter, the Chinese EV startup now expects to deliver 24,500 electric vehicles, down from a prior outlook of 25,000-26,000, but still ahead of Nio’s own lowered Q3 forecast.

On Sept. 1, Nio pared its Q3 outlook to 22,500-23,500 EV deliveries, down from 23,000-25,000 prior, citing “continued uncertainty and volatility of semiconductor supply.” Just a couple days earlier, Li Auto had given a strong Q3 outlook for 25,000 and 26,000 EV deliveries, outpacing Nio’s delivery forecast.

Lowering its Q3 EV forecast Monday, Li Auto cited a slower-than-expected recovery in the chip supply chain.

“Due to the Covid-19 pandemic in Malaysia, the production of chips dedicated for the Company’s millimeter-wave radar supplier has been severely hampered,” Beijing-based Li said in a statement.


IBD Live: A New Tool For Daily Stock Market Analysis


Li Auto Stock

Shares of Li Auto fell 6.2% to 27.29 on the stock market today, tumbling below the 200-day line. Li Auto stock is forming an undefined base with a 36.76 buy point but its relative strength line is lagging, according to MarketSmith chart analysis. Among other China EV stocks, Nio, Xpeng Motors (XPEV) sank 4.4% and BYD (BYDDF) 6%.

The Chinese Evergrande property group crisis is weighing on U.S.-listed Chinese shares as well as stocks broadly. Tesla (TSLA), a big EV player in China, fell 3.7% as it looks to expand its Full Self-Driving program. TSLA stock is trying to hold above a 730 aggressive point.

In July and August, Li Auto outsold Nio and Xpeng, its rival EV startups that offer all-electric vehicles in China and Europe.

Li Auto was one of the first EV companies to successfully commercialize Extended Range Electric Vehicles (EREVs), which require a smaller battery pack by including a small gas engine. A smaller battery means lower production costs. And multiple power sources can reassure EV buyers, given China’s lack of EV charging infrastructure.

YOU MAY ALSO LIKE:

Is Tesla Stock A Buy Right Now? Here’s What Earnings, Charts Show

Is Nio Stock A Buy Right Now As Chinese Electric Cars Boom?

While Tesla Soars, Electric Cars Face A Huge Test

Stocks To Watch: Top-Rated IPOs, Big Caps And Growth Stocks

Find The Latest Stocks Hitting Buy Zones With MarketSmith

Most Related Links :
Business News Governmental News Finance News

Source link

Back to top button