Investing.com -- Li Auto Inc (NASDAQ:LI) unveiled a forecast for current-quarter revenue and deliveries that were both below analysts' expectations, sending U.S.-listed shares in the Chinese electric vehicle maker lower in premarket trading on Monday.
Beijing-based Li Auto moved to slash prices on four of its five models in April and refund customers who had purchased those models earlier this year, in a sign of an intensifying price war in China sparked by growing competition to entice cost-conscious buyers in the world's largest auto market. Warren Buffett-backed BYD (SZ:002594) has previously revised down its prices for its relaunched models. China's Geely Auto, Leapmotor (HK:9863), Xpeng (NYSE:XPEV), GAC Aion, as well as U.S. EV giant Tesla (NASDAQ:TSLA), have also lowered their prices.
These decisions have threatened to weigh on revenues, even during a time of growing demand for non-combustion cars in China. EV sales in the country spiked by 28% in the first quarter, according to data from Counterpoint Research earlier this month.
In a statement on Monday, Li Auto Chief Executive Xiang Li said that the company faces an "ever-changing market landscape," adding that it will "embrace the twists and turns that the journey presents."
The company now expects to post revenue of 29.9 billion yuan to 31.4 billion yuan in the second quarter, compared to Bloomberg consensus expectations for an outlook of 38.63 billion yuan. Vehicle deliveries are also seen at 105,000 to 110,000 units, missing projections of 130,692.
In the first quarter, Li Auto reported revenue of 25.63 billion yuan, an uptick of 36% compared to the prior year. Analysts had called for 25.58 billion yuan.
A total of 80,400 vehicles were delivered during the three month period ended on March 31, a 53% improvement year-on-year, but a drop of more than a third versus the prior quarter. Adjusted net income slipped by 9.7% to 1.28 billion yuan.