Li Auto (LI, Financial) shares saw a decline of 0.28%, trading at $24.94 after releasing their third-quarter earnings report. Despite the company reporting strong vehicle sales and a robust vehicle margin, investors seemed to expect more, which resulted in the stock's downturn.
Li Auto (LI, Financial) reported a total revenue increase of 24% to $6.1 billion, surpassing analyst expectations. However, the October vehicle deliveries of 51,443 were flat compared to the previous quarter, raising concerns about growth stagnation. The stock had previously risen over 50% from its September low, showing the high expectations investors had.
Financial analysis reveals that Li Auto (LI, Financial) has a market capitalization of USD 26.46 billion with a price-to-earnings (P/E) ratio of 18.71 and a price-to-book (P/B) ratio of 3.05. The company's profitability is highlighted by a vehicle margin of 20.9%, while it also maintains strong financial health with a strong Altman Z-score of 3.16. However, the GF Value suggests the stock might be a possible value trap, urging caution among potential investors.
Nikola (NKLA) experienced a sharp decline of 15.2% in its stock price after reporting a gross loss of $61.9 million and a net loss of $199.8 million for the third quarter. Delivering only 90 trucks, Nikola's financial position is becoming concerning with only $198 million in cash available.
Polestar Automotive (PSNY) shares fell by 15% as the company delivered 11,900 cars in the third quarter. This performance casts doubt on its goal to achieve cash flow break-even by 2025 due to its limited scale and brand recognition.
Blink Charging (BLNK) saw a 9.1% drop despite outperforming its peers earlier in the week. The company faces challenges from a shifting policy environment and the possibility of tariffs on Chinese EV imports, which could affect demand for Blink's charging services.
