The stock of Li Auto Inc. (LI) stock surged in the pre-market after the company announced the new monthly record set for delivering vehicles. After the news hit the market, the stock of the company saw a gain of 6.06% in its value to reach $37.60. The stock closed at $34.48 in the last trading session. The average volume of the stock traded in the last trading session was approximately 8.16 million.
Reasons for Li Auto Inc. (LI) stock gain:
There are a couple of reasons for this significant increase in the value of Li auto stock, the one is achieving a new milestone in the month of November and the other is its recently announced unaudited financial statement of their 3rd quarter of 2021.
Today on 1st December 2021, Li Auto stock announced that the company has set a new record of delivering a maximum number of vehicles in a span of a single month. They said the company delivered 13,485 Li ONEs in the month of November. This is a year-year increase of 190.2%. With this, the company announced that they are the first domestic premium brand to achieve a milestone of delivering 10,000 vehicles in a single month in China. This implies the fact that the people of china trust a local car manufacturer brand and their Li ONE is one of the best choices for large SUV users.
Another reason is their recently announced unaudited financial statements which showed some positive number that increased the trust of the investors in their stock. Below are the highlights of their unaudited financial report.
Highlights of their 3rd quarter unaudited financial report:
- The total revenue of Li auto stock was announced to RMB 7.78 billion or US$1.21 billion. This is an increase of 209.7% from the same quarter of the last year’s 2020 revenue of RMB2.51 billion.
- The revenue from the sales of vehicles in the 3rd quarter of 2021 was reported to be RMB7.39 billion or USD$1.15 billion. This is an increase of almost 200% from the third quarter of last year’s revenue of RMB2.46 form vehicles.
- The gross margin of the company was 23.3%. Last year in the same quarter the gross margin was 19.8%.
- The net loss company reported is RMB21.5 million or USD$3.3 million. This is a significant decrease of 79.9% in the loss as compared to a loss in the third quarter of 2020. The loss in the 3rd quarter of 2020 was RMB106.9.
- As of 30th September, 2021, the company had cash and cash equivalents of RMB48.83 billion or US$7.58 billion.
Conclusion:
Li auto stock is showing phenomenal performance and is expected to achieve high revenues in the future. This increased the trust of the investors in its stock which ultimately increased its value and is expected to gain more in the future if the performance remains consistent.
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