On June 26th, Caijing News (editor Hu Jiarong) benefited from the increase in sales volume compared to the previous period. $LI AUTO-W (02015.HK)$The stock price of the company rose by more than 4% during the day due to the strong shock. However, compared with the highest point of the year, the stock price has fallen by nearly 60%.

In terms of news, on June 25th, according to public account news, the weekly sales volume reached 11,700 units in the 25th week of 2024 (June 17-23), and the company has been the top-selling new energy brand in the China market for 9 consecutive weeks.$Li Auto (LI.US)$China should win 1.17 million cars in the 25th week of 2024 (June 17-23), and has been the top selling new energy brand in the Chinese market for nine consecutive weeks.

From the chart, Li Auto Inc.'s sales volume last week surpassed those of Weltmeister, NIO, JIKUAI and other new energy vehicle brands.

Why did Li Auto Inc's stock price experience a sharp decline?

Regarding the sharp decline in Li Auto Inc's stock price, it could be due to factors such as the company's first quarter 2024 performance falling short of expectations, a decrease in vehicle sales revenue compared to the previous quarter, and intensified market competition.

Performance: According to the first quarter 2024 financial report, Li Auto Inc's revenue and net income performance fell short of market expectations, with a year-on-year net income decrease of 36.7% and a quarter-on-quarter decrease of 89.7%.

Sales volume below expectations: In the first quarter of 2024, Li Auto Inc's vehicle sales revenue decreased by 39.9% compared to the previous quarter, mainly due to a decrease in vehicle deliveries caused by the impact of the Chinese New Year holiday and lower-than-expected sales orders in March.

Market competition: With the intensification of the competition in the new energy vehicle market, especially the launch of electric vehicle models by new entrants and traditional automakers, it may affect Li Auto Inc's market share.

In a recent research report, Tianfeng Securities pointed out that Li Auto Inc will face certain pressure in the second quarter of 2024, and sales volume in that quarter is expected to be between 105,000 and 110,000 units, a year-on-year increase of 21.3% to 27.1%.

According to the research report, Li Auto Inc's total revenue for the second quarter will range from RMB 29.9 billion to RMB 31.4 billion, a year-on-year increase of 4.2% to 9.4%. Despite the delay in the launch of the pure electric platform, the company still maintains its sales target of 560,000 to 640,000 units for the entire year, indicating its plan to achieve greater sales breakthroughs through its extended-range platform with four vehicle models.

Editor / jayden