Education
About Us
Working with TipRanks
Follow Us
Li Auto, Inc. (LI)
:LI
Top Page
Li Auto
(NASDAQ:LI)
75Outperform
Positive Factors
Financial Performance
Non-GAAP net profit in 3Q24 reached RMB3.8bn, the highest in history, or about RMB0.8bn higher than forecast.
Market Expansion
The company is exploring overseas markets with potential expansion to Latin America, Middle East, and Europe.
New Product Launch
Li Auto is planning to launch two new BEV SUVs in 2025: i8 and i6, which is expected to boost the company's product lineup and appeal.
Negative Factors
Incentive Reduction
Li Auto reduced its car purchase incentives for the L-series models, which may affect their sales appeal.
Product Strategy
Li Auto is trying to extend its current aging model cycle solely by updating the ADAS system, which is seen as a challenging and unconventional move.
Stock Performance
The drag mainly came from share-based payment and fair value loss from its investee’s share price decline.
Li Auto (LI) vs. S&P 500 (SPY)
Market Cap
$23.16B
Dividend YieldN/A
Average Volume (3M)7.18M
Price to Earnings (P/E)22.1
Beta (1Y)0.83
Revenue Growth15.50%
EPS Growth-32.48%
CountryUS
Employees32,248
SectorConsumer Cyclical
Sector Strength58
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)1.05
Shares Outstanding892,535,100
10 Day Avg. Volume7,811,653
30 Day Avg. Volume7,182,252
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)N/A
Price to Sales (P/S)4.81
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.70Price Target Upside45.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Li Auto Business Overview & Revenue Model
Company DescriptionLi Auto Inc. operates in the energy vehicle market in the People's Republic of China. It designs, develops, manufactures, and sells premium smart electric vehicles. The company's product line comprises MPVs and sport utility vehicles. It offers sales and after sales management, and technology development and corporate management services, as well as purchases manufacturing equipment. The company offers its products through online and offline channels. The company was formerly known as Leading Ideal Inc. and changed its name to Li Auto Inc. in July 2020. Li Auto Inc. was founded in 2015 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes MoneyLi Auto generates revenue primarily through the sale of its electric vehicles, particularly its flagship model, the Li ONE. The company's revenue model centers on the direct sale of vehicles to consumers, emphasizing advanced features and performance to capture a significant share of the Chinese electric vehicle market. Additionally, Li Auto benefits from government incentives and subsidies for electric vehicles, which can enhance the affordability and attractiveness of its products to consumers. The company may also explore additional revenue streams through after-sales services, including maintenance and software upgrades, which can provide ongoing income and strengthen customer relationships. Significant partnerships with technology firms and suppliers contribute to the development and production efficiencies that support Li Auto's revenue growth.
Li Auto Financial Statement Overview
Summary
Overall, Li Auto's financial performance is impressive, marked by strong revenue and profit growth, improving margins, and solid cash flow generation. The company's balance sheet stability and cash flow efficiency support ongoing investments and strategic growth in the competitive vehicle industry.Income Statement
Li Auto has demonstrated significant revenue growth with a remarkable increase in total revenue from 2019 to 2024. The gross profit margin has consistently improved, indicating effective cost management. The company transitioned from negative to positive net income since 2023, enhancing its net profit margin. EBIT and EBITDA margins have also shown substantial improvement, showcasing better operational efficiency and profitability.88
Very Positive
Balance Sheet
The balance sheet reflects strong equity growth and a healthy equity ratio, highlighting financial stability. The debt-to-equity ratio is manageable, indicating prudent leverage. The return on equity has turned positive, driven by improved profitability. Overall, the balance sheet presents a solid financial footing with increasing asset base and equity.82
Very Positive
Cash Flow
Li Auto has shown robust growth in free cash flow, demonstrating effective cash generation capabilities. The operating cash flow to net income ratio is strong, indicating efficient conversion of income to cash. The company has maintained a positive free cash flow to net income ratio, supporting sustainable growth and financial flexibility.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 144.46B | 123.85B | 45.29B | 27.01B | 9.46B |
| Gross Profit | ||||
| 29.66B | 27.50B | 8.79B | 5.76B | 1.55B |
| EBIT | ||||
| 7.02B | 7.41B | -3.65B | -1.02B | -669.34M |
| EBITDA | ||||
| 8.82B | 9.21B | -2.05B | 500.83M | 199.03M |
| Net Income Common Stockholders | ||||
| 8.03B | 11.70B | -2.03B | -321.45M | -166.03M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 112.81B | 103.26B | 56.51B | 47.52B | 28.64B |
| Total Assets | ||||
| 162.35B | 143.47B | 86.54B | 61.85B | 36.37B |
| Total Debt | ||||
| 16.34B | 13.55B | 12.26B | 7.84B | 2.11B |
| Net Debt | ||||
| -49.56B | -77.78B | -26.21B | -20.01B | -6.82B |
| Total Liabilities | ||||
| 91.03B | 82.89B | 41.35B | 20.78B | 6.57B |
| Stockholders Equity | ||||
| 70.87B | 60.14B | 44.86B | 41.06B | 29.80B |
| Cash Flow | Free Cash Flow | |||
| 8.20B | 44.19B | 2.25B | 4.90B | 2.46B |
| Operating Cash Flow | ||||
| 15.93B | 50.69B | 7.38B | 8.34B | 3.14B |
| Investing Cash Flow | ||||
| -41.14B | -12.07M | -4.36B | -4.26B | -18.74B |
| Financing Cash Flow | ||||
| -415.65M | 185.38M | 5.64B | 16.71B | 24.71B |
Li Auto Technical Analysis
Negative
23.21
Price Trends
26.21
Negative
24.71
Negative
23.58
Negative
Market Momentum
-1.00
Negative
44.26
Neutral
79.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LI, the sentiment is Negative. The current price of 23.21 is below the 20-day moving average (MA) of 23.95, below the 50-day MA of 26.21, and below the 200-day MA of 23.58, indicating a bearish trend. The MACD of -1.00 indicates Negative momentum. The RSI at 44.26 is Neutral, neither overbought nor oversold. The STOCH value of 79.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LI.
Li Auto Risk Analysis
Li Auto disclosed 108 risk factors in its most recent earnings report. Li Auto reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Li Auto Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $23.16B | 22.12 | 12.29% | ― | 15.50% | -32.48% | |
59 Neutral | $6.44B | 11.30 | 3.27% | 4.27% | 2.37% | -21.19% | |
50 Neutral | $18.02B | ― | -17.11% | ― | 32.32% | 49.34% | |
45 Neutral | $7.32B | ― | -142.49% | ― | 16.99% | 12.99% | |
45 Neutral | $13.12B | ― | -60.48% | ― | 12.09% | 17.65% | |
41 Neutral | $7.03B | ― | -54.15% | ― | 35.71% | 8.24% | |
32 Underperform | $7.39B | ― | 36.15% | ― | ― | ― |
* Consumer Cyclical Sector Average
Performance Comparison
LI
Li Auto
23.78
-1.03
-4.15%
NIO
Nio
3.60
-0.41
-10.22%
XPEV
XPeng, Inc. ADR
18.20
11.02
153.48%
LCID
Lucid Group
2.32
-0.20
-7.94%
VFS
VinFast Auto
3.16
0.74
30.58%
RIVN
Rivian Automotive
11.15
2.11
23.34%
Li Auto Earnings Call Summary
Earnings Call Date: Mar 14, 2025 | % Change Since: -19.19% | Next Earnings Date: May 27, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong delivery numbers, financial performance, and expansion efforts, particularly in autonomous driving and international markets. However, there were concerns about declining gross margins, reduced net income, and challenges in maintaining high average selling prices. Despite these challenges, the company's strategic initiatives in R&D, supercharging infrastructure, and global presence are promising for long-term growth.Highlights
Record Vehicle Deliveries
In Q4 2024, Li Auto delivered over 158,000 vehicles, setting a new quarterly record. Full year deliveries exceeded 500,000 units, marking a significant milestone as the first emerging NEV brand and Chinese premium auto brand to reach this level.
Strong Financial Performance
Total revenues for Q4 2024 reached RMB44.3 billion, with full year total revenues at RMB144.5 billion. The company reported cash reserves of RMB112.8 billion, demonstrating strong cash generation capabilities.
Expansion of Supercharging Network
In 2024, Li Auto built 1,420 supercharging stations, operating the largest highway supercharging network among auto OEMs in China. Plans to expand to 4,000 stations by the end of 2025 were announced.
International Expansion Initiatives
Li Auto opened an R&D center in Munich, Germany, marking its first overseas R&D facility. The company also established servicing centers in Kazakhstan, Dubai, and Uzbekistan, with plans to enhance overseas expansion efforts.
Autonomous Driving Advances
The company rolled out AD Max V13, upgrading highway NOA to an end-to-end architecture. It also introduced AI reasoning visualization for enhanced user understanding of autonomous driving functions.
Lowlights
Decrease in Gross Margin
Gross margin in Q4 2024 was 20.3%, down from 23.5% in the same period last year. This decline was attributed to a change in product mix and interest subsidies affecting average selling price.
Reduced Net Income
Net income in Q4 2024 was RMB3.5 billion, a 38.6% decrease year-over-year, despite a quarter-over-quarter increase. This decline was influenced by various factors including lower gross margins.
Challenges in Maintaining High ASP
The average selling price (ASP) saw a decline due to interest subsidies and changes in the product mix, impacting overall revenue generation from vehicle sales.
Company Guidance
In the Li Auto Fourth Quarter and Full Year 2024 Earnings Conference Call, the company provided guidance for continued growth in 2025. They aim to deliver between 88,000 and 93,000 vehicles in Q1 2025, marking a year-over-year increase of 9.5% to 15.7%. The first quarter total revenue is expected to be between RMB23.4 billion and RMB24.7 billion, representing a year-over-year decrease of 8.7% to 3.5%. Li Auto achieved record vehicle deliveries in Q4 2024 with over 158,000 units, contributing to a full-year total of over 500,000 units. The company also highlighted its strong financial position with a cash reserve of RMB112.8 billion at the end of 2024, supporting long-term investments in electrification and AI. Additionally, the company is accelerating the deployment of its supercharging network, aiming for 2,500 stations by the launch of its first battery electric SUV, Li i8, and plans to expand to 4,000 stations by the end of 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.