Li Auto Inc (NASDAQ: LI) stock jumped 2.78 percent on Tuesday after the firm revealed its electric car shipments and sales revenue for the third quarter of 2021, which ended September 30.
Li Auto Inc (LI) stock reported a $0.02 loss per share, which was lower than the $0.03 expected by analysts. This compares to a loss of $0.041 per share in the same period the previous year.
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Total quarterly revenues increased 209.7% year over year and 54.3 percent year over year to $1.21 billion, above market expectations of $1.13 billion.
The company’s high revenue growth is due to a 190 percent rise in sales of the company’s single electric car, the Li ONE, reaching 25,116 units in the third quarter of 2021.
From the third quarter of last year to the third quarter of this year, Li Auto’s R&D investment surged by 165.6 percent to $137.9 million. The amount spent on general and administrative expenditures increased by 198.5 percent to $158.5 million.
Li Auto also stated that the firm would continue to increase expenditure in order to invest in technology and construct a new facility in Beijing, which will open in 2023. At its Changzhou plant, the company now produces automobiles.
The business expects sales of $1.37 billion to $1.46 billion in the fourth quarter of 2021, indicating an annual increase of 112.7 percent to 126.9%.
Shipments of Li ONE are expected to reach between 30,000 and 32,000 units, representing a 107.4 percent to 121.2 percent increase over the same period last year.
Li Auto delivered 7,649 automobiles in the first month of the fourth quarter of 2021, which was October. As a result, the current prediction predicts 11,500 deliveries in November and December.
The company’s management claims that the manufacturing capacity is greater, at over 14 thousand automobiles per month. Li Auto was unable to attain this level due to global scarcity of semiconductors.
However, by 2022, management expects to generate between 14,000 and 15,000 automobiles each month.