Li Auto Upgraded to Neutral After Q1 Gross Margin Falls to 7.9% with $0.15 Loss
LI•Macquarie upgraded Li Auto to Neutral as the company posted Q1 revenues of RMB23.0 billion and a $0.15 per share loss. Gross margin plunged to 7.9% and vehicle margin to 6.1% despite a 2.5% year-over-year rise in deliveries to 95,142 units.
1. Upgrade Details
Investment firm Macquarie raised Li Auto’s rating from Underperform to Neutral, signaling a less pessimistic outlook for the EV maker despite recent operational challenges. The upgrade reflects belief in Li Auto’s long-term growth potential even as the stock traded near its 52-week low.
2. First-Quarter Financial Performance
Li Auto reported Q1 revenues of RMB23.0 billion and a net loss of $0.15 per share, wider than analyst expectations. Gross margin tumbled to 7.9% from 20.5% year-on-year and vehicle margin slid to 6.1% from 19.8%, driven by heavier discounts.
3. Delivery and Infrastructure Expansion
Total vehicle deliveries rose 2.5% year-on-year to 95,142 units, underscoring steady demand. Li Auto also expanded its network to 517 retail stores, 552 service centers and 4,057 supercharging stations nationwide.
