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Li Auto stock falls as Q3 earnings beat fails to impress

BEIJING – Chinese electric vehicle maker Li Auto Inc . (NASDAQ:LI) reported better-than-expected third-quarter results on Wednesday, but its stock fell 5.5% as investors appeared unimpressed by the earnings beat.

Li Auto posted adjusted earnings per share of RMB3.63 ($0.52) for the quarter ended September 30, surpassing analyst estimates of RMB2.68. Revenue came in at RMB42.9 billion ($6.1 billion), topping the consensus forecast of RMB41.6 billion and representing a 23.6% increase YoY.

Despite the strong results, Li Auto’s shares declined 6% following the report. The company delivered a record number of vehicles in Q3, cementing its position among Chinese automakers in the premium NEV market segment above RMB200,000.

“We achieved record-breaking deliveries in the third quarter, further cementing our leadership among Chinese automotive brands in the RMB200,000 and above NEV market,” said Xiang Li, chairman and CEO of Li Auto.

Vehicle sales rose 22.9% YoY to RMB41.3 billion ($5.9 billion). Gross margin contracted slightly to 21.5% from 22% a year earlier but improved from 19.5% in Q2.

The company ended the quarter with 479 retail stores across 145 Chinese cities. It also operated 436 servicing centers and 894 super charging stations equipped with 4,286 charging stalls.

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