Record Profit for Li Auto Signals Rapid Growth in China’s Electric-Vehicle Market

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Li Auto, one of China’s leading electric-vehicle manufacturers, has announced its record-breaking quarterly profit, driven by a surge in sales. The Beijing-based company, which competes with industry giants such as Tesla, BYD, Nio, and XPeng in China’s robust electric-car market, is confident that its revenue will more than double in the final quarter of this year.

Li Auto projects a revenue of at least 38.46 billion yuan ($5.28 billion) in the fourth quarter, representing an impressive 118% increase compared to the same period last year. The company also expects to deliver between 125,000 and 128,000 vehicles in the final quarter, surpassing its previous record of 105,108 deliveries in the third quarter.

In the third quarter, Li Auto achieved a net profit of CNY2.82 billion, a significant turnaround from the previous year’s loss and an improvement on the CNY2.29 billion profit posted in the second quarter. Furthermore, the company experienced a remarkable surge in total revenue, which more than tripled to CNY34.68 billion compared to the previous year.

Notably, Li Auto’s gross margin soared to 22.0% from 12.7% year-on-year, slightly edging out the preceding quarter’s margin of 21.8%.

The exceptional performance of Li Auto underscores the growing popularity and demand for electric vehicles in China. With its rapid expansion and increasing market share, Li Auto demonstrates its ability to compete with established players in the industry. As the Chinese electric-vehicle market continues its upward trajectory, Li Auto remains poised for further success.

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