Li Auto Cuts Q3 Delivery Outlook But Still Expects To Outsell Nio

Li Auto (LI) cut 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.


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.

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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 stock sank 5.2%, Xpeng Motors (XPEV) 5% and BYD (BYDDF) 6.5%.

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 4.6% as it looks to expand its Full Self-Driving program. TSLA stock is undercutting a 730 aggressive point but could be forming a new handle.

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.


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