Q3 guidance calls for deliveries of 95k–100k and revenue of RMB 26.6bn–28.0bn. MEGA and i9 are slated to launch in Sep. That said, vehicle GPM was only 9.4% in Q2 (-1,000bps YoY) with a net loss of RMB 1.7bn; management will not pass through chip and battery cost increases to users and is targeting a long-term GPM of 15%–20%.
Q3 guidance disappointed. Both unit and revenue outlooks were weak.
+9The new L9 has launched and is now being delivered. Q2 GPM is expected to recover to ~10%.
Li Auto's 'distressed turnaround' still hasn't arrived
R&D spend is expected to stay around RMB 12 bn this year. AI-related investment should still account for about half.
Li Auto has effectively entered a loss-making phase. The company appears to be on a loss trajectory.
AI glasses are regarded as the 'next-generation personal mobile gateway' and are also the most likely mobile terminal to challenge smartphones.
Plan to make Li Auto the best-performing company in the embodied intelligence field within the next 3 to 5 years
The internal and external challenges of the L series are more severe than imagined.
On Friday night, Li Auto released its third pure electric model, the i6, following the Mega and i8. This model is expected to carry the burden of sales volume. Compared to the complete failure of the Mega and the product configuration mistakes of the i8, the i6 has learned significant lessons in terms of product configuration and pricing strategy. 1) Single blockbuster strategy: The i6 does not have Pro or Max versions. Features of the advanced version are offered as optional configurations; for example, four-wheel drive is an optional feature, the color TV is optional, and the refrigerator is optional. However, regarding the battery...