Beijing-based automaker Li Auto (LI) missed earnings and revenue expectations in the second quarter and said it expected sales to decline in 2025, sending shares 3% lower in premarket trading.
Competitive pressure is rising in China from other electric vehicle makers, including SUV-focused ones such as AITO and Nio’s (NIO) new brand, Onvo. Chinese automakers are also contending with a broader slowdown.
Second quarter revenue declined 4.5% year over year to 30.2 billion yuan ($4.2 billion), while Wall Street expected 31.8 billion yuan ($4.4 billion).
The automaker delivered 111,074 vehicles, below its prior guidance of 123,000 to 128,000 vehicles.
For the full year, Li Auto said it expects to deliver between 90,000 and 95,000 vehicles, representing an annual decrease of 41.1% to 37.8%. Revenue is anticipated to be between RMB24.8 billion ($3.5 billion) and RMB26.2 billion ($3.7 billion), representing a year-over-year decrease of 42.1% to 38.8%.
Li Auto said it expects to deliver between 90,000 and 95,000 vehicles for the third quarter, with revenue projected at 24.8 billion yuan to 26.2 billion yuan, down 39%-42% from a year earlier.
Li Auto stock fell 3% in premarket trading.