Li Auto News: Why LI Stock Is Red Hot After Earnings

What a week it has been for Chinese electric car stocks. Seemingly each day, Li Auto (NASDAQ:LI), Xpeng (NYSE:XPEV) and Nio (NYSE:NIO) have climbed to new highs. Friday morning is no different, thanks to an expectation-beating earnings report. LI stock is rallying again, at one point surging 15%.

A front view of the Li Xiang One SUV from Li Auto (LI).
Source: Carrie Fereday /

As we reported yesterday, there is a lot of excitement surrounding Li Auto. Many investors see it as the next Nio or Tesla (NASDAQ:TSLA) — a chance to capitalize on the growing demand for electric vehicles. Importantly, the company has continued to generate excitement since its July 2020 IPO. Because this was the first earnings report in its life as a public company, Wall Street was paying close attention.

So what exactly do investors need to know? Dive into LI stock with these fast facts.

  • For the third quarter, Li Auto reported 8,660 deliveries of its Li ONE model. Investors should note that the Li ONE is the only model currently in production.
  • Importantly, Q3 deliveries were up 31% quarter-over-quarter, also marking a new quarterly record.
  • Vehicle sales similarly grew, up to 2.46 billion yuan from 1.92 billion yuan in Q2 2020.
  • Total revenue hit 2.51 billion yuan in the third quarter, up almost 29% from 1.95 billion yuan in the previous quarter.
  • As the company gets up and running in the public markets, its operating loss hit 180 million yuan. This was up 2.1% from 176.3 million yuan in the second quarter.
  • Net loss came in at 106.9 million yuan, a 42.2% increase from 75.2 million yuan in Q2.

LI Stock: Earnings Are Yet Another Catalyst

Although LI stock has come back down after its pre-market surge, it is important to recognize that the third-quarter report was a positive. Analysts were calling for revenue of $290.87 million. Li Auto delivered total quarterly revenue of $369.8 million.

More importantly, investors need to recognize the massive EV catalyst at play for LI stock. Checking the earnings box was just one step on its move higher. As Nio, Xpeng and Li Auto continue to captivate investor sentiment, pay close attention.

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Sarah Smith is a Web Content Producer for 

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