Li Auto (NASDAQ:LI) stock rose overnight after the company reported positive results and an increase in electric vehicle (EV) deliveries.
The Chinese company said it earned over $200 million non-GAAP, about 20 cents per share, on revenue of over $2.7 billion. It delivered more than 52,500 cars during the quarter and said it had deliveries of over 25,000 in April.
Like their American counterparts, Chinese EV makers are struggling to scale and survive a shakeout that has made new equity financing hard to obtain. The stock opened May 10 at about $26.20, representing a market cap of over $25 billion.
LI Stock: Breaking Away From the Pack
More important, Li not only doubled its revenue in the first quarter, compared to a year ago, but it showed a profit. While it failed to meet the latest analyst estimates on revenue, earnings were far above estimates.
Li hopes to ship 2 million cars in 2025. China is now the world’s second-largest auto producer, with exports up 54%. Costs are falling, and many companies are working to capture the export mid-market abandoned by American companies.
What Happens Next?
On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.