LI AUTO-W (02015) shares soared 5.08% in pre-market trading on Friday, despite reporting mixed first-quarter 2025 earnings results. The Chinese electric vehicle maker posted earnings that fell short of analyst expectations but managed to surpass revenue estimates.
Li Auto reported adjusted earnings of 0.62 yuan per share for the quarter ended March 31, missing the mean expectation of 1.71 yuan per share from eight analysts. However, the company's revenue rose 1.1% year-over-year to 25.93 billion yuan, beating the analyst consensus of 25.08 billion yuan. The quarterly net income stood at 650.32 million yuan.
Despite the earnings miss, investors seem to be focusing on Li Auto's revenue growth and overall market position. The company's shares have shown strong performance this year, rising 10.7% this quarter and gaining 16.3% year-to-date. Analysts maintain a positive outlook on Li Auto, with the current average rating being "buy". Wall Street's median 12-month price target for Li Auto Inc is $32.70, suggesting potential upside. The unexpected stock surge amid mixed results highlights the market's continued confidence in Li Auto's long-term prospects in the competitive electric vehicle sector.