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SHANGHAI (Reuters) – China’s Li Auto (NASDAQ:) mentioned it has postponed plans to launch pure electrical SUV fashions to subsequent 12 months, citing hurdles corresponding to an absence of sufficient quick chargers, sending its shares down greater than 17% on Tuesday.
The choice comes as Li Auto, which has constructed its income and success on 4 extended-range gasoline electrical hybrid fashions, has additionally encountered a setback with its first totally electrical mannequin Mega that did not meet its authentic expectation of gross sales.
“Sufficient charging stations and sufficient incremental show spots (in our retail retailers) are two essential and vital situations for promoting our BEV SUV product,” chief govt Li Xiang informed an earnings name late on Monday, referring to battery-powered EVs.
Li Auto had beforehand deliberate to unveil three electrical SUVs this 12 months and Li mentioned his nine-year-old firm would not launch any electrical SUV mannequin till the primary half of subsequent 12 months.
Li Auto had pinned its hopes on the Mega MPV that touts a streamlined bullet-style form to outsell any mannequin priced above 500,000 yuan ($69,000) in China. The corporate delivered greater than 3,000 models of Mega in March, whereas analysts had anticipated month-to-month gross sales of 8,000 models.
“The corporate has lowered its precedence for 2024 profitability however has been specializing in laying a extra strong basis for BEV’s success after the incorrect expectation on the Mega,” China Retailers Financial institution Worldwide analyst Shi Ji mentioned in a be aware.
The corporate reported a 37% fall in first quarter revenue, which Li mentioned was under his expectation originally of the 12 months.
The investments required to construct EV infrastructure, on which its friends corresponding to Tesla (NASDAQ:) and Nio (NYSE:) have extensively spent, might weigh on Li Auto’s profitability, analysts mentioned.
Li Auto had put in greater than 400 quick charging stations in China by mid-Might. Against this, Tesla has practically 2,000 Supercharging stations within the nation, whereas Nio has greater than 2,200 quick charging stations and a couple of,415 battery swapping stations out there for its EV customers for fast energy up.
($1 = 7.2415 renminbi)
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