By Jiahui Huang

Li Auto is scheduled to report results for the first quarter on Thursday. Here's what you need to know:

NET PROFIT: The Chinese automaker's first-quarter net profit is estimated at 488.3 million yuan, equivalent to $67.9 million, according to the consensus estimate of analysts polled by Visible Alpha. That compares with net profit of 592.6 million yuan a year earlier.

REVENUE: Li Auto is expected to report total revenue of 25.28 billion yuan for the first quarter, down 1.4% from a year earlier, according to Visible Alpha.

The automaker delivered 92,864 vehicles for the quarter, in line with its guidance for deliveries of 88,000-93,000 vehicles.

Li Auto's Hong Kong-listed shares rose 5.4% in the first quarter, tracking strong overall sentiment on China's EV stocks, and benefiting from optimism following the release of photos of its fully electric SUV model, and its new autonomous-driving system.

WHAT TO WATCH:

--MARGIN: Li Auto's margin was pressured by weak sales in the first quarter and its economies of scale fell very fast, CCB International analyst Qu Ke said. Investors are closely watching the company's margin to evaluate profitability and cost control.

--GUIDANCE: Investors will be watching for the company's guidance for second-quarter deliveries and revenue.

--AUTONOMOUS DRIVING: Li Auto will likely accelerate the deployment of more notable autonomous-driving features to maintain its competitiveness. That could improve resilience in sales of its current portfolio as well as support sales of new models and overall margins, HSBC Global Research wrote in a recent note.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

May 28, 2025 03:42 ET (07:42 GMT)

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