Li Auto

Li Auto's parts suppliers in the Yangtze River Delta region have not fully recovered, and it continues to experience challenges with parts supply shortages, the company said.

The base will start construction in mid-June, with prototype production expected to begin in May 2023 and full production in 2024.

Li Auto originally planned to sell 200,000 vehicles this year, but now believes that target will not be met given the current challenging macroeconomic environment, according to LatePost.

Li Auto will build on the LWG platform to develop more environmentally friendly products, the company said.

Dismissing an offer or laying off employees is normal for a company, but in China, things get delicate when it comes to groups that are considered disadvantaged.

Li Auto reported solid Q1 results while Q2 guidance was somewhat soft given uncertainty around the Covid recovery cadence.

Li Auto's guidance for second quarter deliveries is 21,000-24,000 vehicles, meaning it expects 16,833-19,833 combined deliveries in May and June.

Edison Yu's team lowered their price target on Li Auto by $6 to $28, based on 3.0x 2023E EV/Sales, down from 3.5x previously.

Some of Li Auto's suppliers have completely shut down production, making it impossible to maintain production after existing parts inventories have been absorbed, it said.

Li Auto delivered 31,716 vehicles in the first quarter, which is near the upper end of the guidance range of 30,000-32,000 vehicles.