Li Auto Inc. (NYSE:LI) shares are primed for the release of Q3 earnings on Wednesday as the shares seek to halt a recent slide.
LI – Weekly Chart
LI shares have traded below the 2022 uptrend line and would need a positive earnings report to return to that trend.
The electric vehicle manufacturer delivered 93,211 cars in the latest quarter, a 39% year-on-year decline and a 16% drop from Q2.
Li had previously forecast 3Q revenue of $3.5 billion, but October deliveries of 31,767 were a fifth consecutive month of decline.
Monthly deliveries were down 6.43% from September’s 33,951 units, according to CnEVPost data.
It was a tough October for the company, with all four extended-range vehicles down by more than 60%. From January to October, Li delivered 328,916 vehicles, down by 16% y-o-y. The manufacturer also faces a headwind after recalling 11,411 units of the 2024 Li Mega MPV due to a risk of battery fire.
In a recent research note, China Renaissance Securities analysts expect the recall to hit earnings by 1.14 billion RMB. The problems can also be a drag on the company’s early 2026 profits. Analysts will be looking for a boost in profitability, or the stock could struggle to gain further ground.
Li shares hit a June high of around $32 but are now trading -25% year-to-date.
