Li Auto's stock rallies after surprise loss but revenue beat expectations, and outlook was upbeat

Shares of Li Auto Inc. rallied 2.9% in premarket trading Monday, after the China-based electric vehicle maker reported a surprise second-quarter loss but revenue that beat expectations as deliveries nearly tripled and provided an upbeat outlook. 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 with the FactSet consensus for breakeven. Total revenue jumped 158.8% to RMB5.04 billion ($780.4 million), beating expectations of RMB4.68 billion, according to FactSet. Deliveries for the second quarter grew 166.1% to 17,575, and for July, the company said Li ONE deliveries increased 251.3% to 8,589. For the third quarter, the company expects total revenue of RMB6.98 billon ($1.08 billion), compared with the FactSet consensus of RMB5.52 billion, and projects deliveries to rise 188.7% to 200.2% to 25,000 to 26,000 vehicles. The stock has rallied 25.9% over the past three months through Friday, while the iShares MSCI China ETF has dropped 15.7% and the S&P 500 has gained 7.3%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Li Auto's stock rallies after surprise loss but revenue beat expectations, and outlook was upbeat
Shares of Li Auto Inc. rallied 2.9% in premarket trading Monday, after the China-based electric vehicle maker reported a surprise second-quarter loss but revenue that beat expectations as deliveries nearly tripled and provided an upbeat outlook. 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 with the FactSet consensus for breakeven. Total revenue jumped 158.8% to RMB5.04 billion ($780.4 million), beating expectations of RMB4.68 billion, according to FactSet. Deliveries for the second quarter grew 166.1% to 17,575, and for July, the company said Li ONE deliveries increased 251.3% to 8,589. For the third quarter, the company expects total revenue of RMB6.98 billon ($1.08 billion), compared with the FactSet consensus of RMB5.52 billion, and projects deliveries to rise 188.7% to 200.2% to 25,000 to 26,000 vehicles. The stock has rallied 25.9% over the past three months through Friday, while the iShares MSCI China ETF has dropped 15.7% and the S&P 500 has gained 7.3%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.