Robert Way/iStock Editorial via Getty Images
Li Auto (NASDAQ:LI) on Thursday revised down its delivery outlook for 1Q24, citing lower-than-expected order intake.
The electric vehicle manufacturer now anticipates delivering between 76,000 and 78,000 vehicles, a significant reduction from the initial estimate of 100,000 to 103,000 vehicles.
Xiang Li, chairman and CEO of Li Auto, acknowledged operational challenges with Li MEGA and outlined plans to recalibrate the strategy, focusing on core user groups and cities with stronger purchasing power.
“We put excessive emphasis on sales volume and competition, distracting us from what we excel at—creating value for our users and driving operating efficiency. We will lower our delivery expectations and restore sustainable growth by refocusing on enhancing user value instead of competition while maintaining operating efficiency,” commented Xiang Li, chairman and chief executive officer of Li Auto.
During premarket trading, LI shares fell by up to 7%.
Earlier this month, LI announced that it delivered 20,251 vehicles in February 2024, representing a 35% decrease from January.
More on Li Auto
- Li Auto Q4: Crushing Expectations
- Li Auto Charges Ahead In Fourth Quarter As Slowdown Looms
- Li Auto Q4 Earnings Recap: China's EV Stand Out Is Charging Ahead
- Ford rallies after U.S. sales impress while pure-play EV stocks slump again
- Li Auto delivers over 20,000 vehicles in February, aims for 50,000 in March