Li Auto (LI.US) stock erased early gains and is trading 6% lower after a Chinese electric vehicle manufacturer reported a surprise second-quarter loss and revenue that beat market expectations. Net losses narrowed to RMB235.5 million ($36.5 million), or RMB0.26 per American depositary receipt, from RMB345.2 million, or RMB2.71 per ADS, in the year-ago period. Excluding nonrecurring items, the adjusted per-ADS loss was RMB0.07, compared to consensus for breakeven. Total revenue surged 158.8% to RMB5.04 billion ($780.4 million) and topped analysts’ projections of RMB4.68 billion.
Company also said it delivered 17,575 vehicles during the quarter, a 166% increase over a year earlier. For the third quarter, the company plans to deliver between 25,000 and 26,000 cars, which would be an increase of 189%-200% from the third quarter of 2020. Revenue may reach RMB 6.98 billion-7.25 billion ($1.08 billion-$1.12 billion), an increase of 178%-189% from a year earlier. That prediction is subject to changes in market conditions, "in particular, the ongoing industry-wide semiconductor shortage due to the global Covid-19 pandemic," Li Auto said.
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Li Auto (LI.US) stock failed to break above 200 SMA (red line)/ 50 SMA (green line) and price pulled back. Currently stock is testing the lower limit of the triangle formation. Should break lower occur, then downward move may be extended to the 26.30 level, which coincides with 50.0 % Fibonacci retracement of the last upward wave. On the other hand, if buyers manage to regain control, then another upward impulse towards July high at $36.75 may be launched. Source: xStation5
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