Why Li Auto Stock Crashed Today
One Chinese electric vehicle (EV) maker has differentiated itself from the crowd. It has grown by selling extended-range electric vehicles (EREVs) that utilize a small onboard gasoline engine to boost vehicle range. But Li Auto (NASDAQ: LI) also just came out with its first pure electric model earlier this year.
Investors were hoping the fully electric Li Mega would help boost sales beginning in the second quarter. But Li's second-quarter earnings report showed it only boosted vehicle revenue by 8.4% year over year. That, along with other factors, has the stock tanking on the quarterly report. Li Auto shares were lower by 15.9% as of 12:45 p.m. ET Wednesday.
The EV maker did report better-than-expected second-quarter results. It earned about $0.10 per share, slightly ahead of analyst expectations. Sales of about $4.4 billion met estimates, according to FactSet Research. That makes Li one of the few profitable global EV makers.
Source Fool.com
