Why Did Li Auto Stock Crash Today?
Shares of Chinese electric carmaker Li Auto (NASDAQ: LI) tumbled 9.5% through 11:25 a.m. ET Tuesday, despite the company crushing earnings forecasts for the second quarter -- and giving better-than-expected guidance as well.
Heading into the quarter, analysts had guessed Li might earn as little as $0.12 per share on sales of just over $3.8 billion. In fact, Li earned three times the expected number -- $0.38 per share -- and its sales were well above expectations as well at $3.95 billion.
Investors may have been spooked by news that China's national imports and exports both declined steeply in July, alongside reports that manufacturing activity in the country has declined for four straight months. And broadly speaking, this is a concern. At the same time, however, GDP growth in the country is still on target for 5% this year.
Source Fool.com
