Embattled EV Startups Li Auto, Rivian To Report Earnings, With Outlook Key For Emerging Tesla Rivals
Li Auto (LI) prepares to report Tuesday for the first quarter, with Rivian (RIVN) on deck Wednesday. Both are promising but embattled EV startups.
Li Auto stock, along with peers Nio (NIO) and Xpeng (XPEV), tumbled further Monday amid slowing EV sales and US delisting fears. Rivian stock plunged Monday on an unconfirmed report that Ford (F) will unload millions of shares of the EV startup.
Their earnings will matter less than production and delivery outlooks, amid industry challenges.
Rivian aspires to shake Tesla‘s (TSLA) dominance in the US market. In China, Li Auto and its startup peers are challenging both Tesla and homegrown EV giant BYD (BYDDF).
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Li Auto Earnings
Estimates: Analysts polled by FactSet expect Li Auto to lose 7 cents per ADR vs. a loss of 6 cents a year ago. Revenue is seen vaulting 173% to $ 1.49 billion.
Results: Check back early Tuesday.
Li has previously disclosed that it delivered 31,716 vehicles during the first quarter, near the high end of its forecast range and jumping 152% year over year.
Outlook: Li Auto’s Q2 deliveries and revenue outlook will be key. Wall Street expects Q2 revenue of $ 1.759 billion.
Investors will be eager to hear the latest on supply disruptions after fresh Covid-19 lockdowns in China gutted EV sales in April for Li Auto and its startup peers. Li Auto on May 1 reported it delivered 4,167 Li One hybrid SUVs, down 62% vs. March’s 11,034 and 25% below a year earlier.
The automaker also recently delayed the L9 SUV, a new hybrid EV that will join the Li One in the Chinese startup’s lineup.
Li Auto Stock
Shares of Li Auto stock dived 9.1% to 19.01 on Monday amid a broad sell-off on the stock market today. Li Auto stock undercut the 50-day moving average in April after the SEC added it to a provisional list of foreign companies to be delisted from US exchanges unless they open up their accounts. The relative strength line for Li stock shows serious lag. Nio and Xpeng extended losses Monday. They sank last week after joining Li Auto on the provisional list of Chinese companies poised for a US delisting.
Estimates: Analysts polled by FactSet forecast Rivian to lose $ 1.41 per share on revenue of $ 132.7 million. There are no year-ago figures.
Results: Check back late Wednesday.
Outlook: Rivian expects to produce 25,000 EVs in 2022, after halving its prior target in March.
Shares of Rivian tanked 21% to 22.78 Monday, a record low. Rivian stock tumbled on a report that Ford will sell 8 million out of 102 million RIVN shares that it owns. Ford declined to comment on the report.
Promising EV startup Rivian, backed by Ford and Amazon (AMZN), came public via a blockbuster IPO last November.
It began limited deliveries of the R1T, an all-electric truck, late last year. But in March, Rivian CEO RJ Scaringe warned that EV production in 2022 will fall well short of plans, despite robust demand. Management halved plans to build 50,000 EVs this year.
Last week, rival startup Lucid (LCID) maintained its production target but warned of supply disruptions, including Covid-related factory shutdowns in China. LCID stock sank 9.8% to 16.37 on Monday, the lowest since Sept. 1.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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