Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

LATEST
Chinese Social Media Platform Weibo Punished for Spreading Pornographic Content
Trending in China: Could “76 Days”, a Doc About Covid-19 in Wuhan, Win an Oscar?
Huawei to Establish Biggest-Ever Overseas Flagship Store in Riyadh
China’s First High-School Education Group Files for $100m US IPO
Danish Pension PBU Backs First Close of New SE Asia-Focused Women’s Fund
Tencent Music to Buy Audiobook Platform Lazy Audio for $416 million
Shanghai-Based Robot Developer Closes $46 Million Funding Round
Trending in China: Top Broadcast Exec Questions if Esports Are Really a Sport – Cue Heated Debate
Chinese Video Streamer iQiyi Targets U.S. Market With Animation on Nickelodeon
Chinese Majority Owned Lotus Announce EV Sports Car Venture With Renault’s Alpine
Chinese New Film Materials Maker HIUV on Track to Raise $227m in STAR Market IPO
Jordan Slam Dunks on Copycat Chinese Sportswear Brand Forcing Them to Change Their Name
Trending in China: Will ‘Chinese Baijiu’ Name Change Propel It To Global Dominance?
EHang Pioneers Self-Flying Drones for Tourists in Greater Bay Area City
TCL Squashes Rumours it is Withdrawing From North America Amid Empty Shelves
Chinese PE Fund Manager CICC Capital Secures $649m Second Close of Biomedicine Fund
WeRide Receives $310 Million as Beijing Opens Highways to Autonomous Car Tests
China’s Orchid Asia Leads Funding in Delivery Platform Fantuan, Edtech Startup Ivydad
U.S.-Listed Video Streamer Bilibili Files for Secondary Listing in Hong Kong, CNBC Reports
Dining Delivery Pay Dispute Leads Man to Set Himself on Fire
Sales and Losses Surge for Tesla Rival Li Auto

By Ding Yi / Nov 16, 2020 01:20 PM / Business & Tech

Chinese electric vehicle startup Li Auto posted strong sales growth in the third quarter and forecast more for the rest of the year, even as its losses widened on higher R&D spending.

During the three months through September, the U.S.-listed carmaker saw its net loss grow to 106.9 million yuan ($15.7 million) compared with a 75.2 million yuan loss in the second quarter, according to its latest earnings report.

The growing losses partly reflected a big increase in spending on research and development, which rose by 66.1% to 334.5 million yuan in the third quarter compared with the second.

Li Auto has partnered with several tech firms to build smart cars, including U.S. chipmaker Nvidia, which will provide its Nvidia Drive AGX Orin, a software-defined self-driving platform, for Li Auto’s new extended-range sport utility vehicle model slated for launch in 2022.

While its losses grew, Li Auto also enjoyed solid sales growth for the quarter, as it delivered 8,660 of its Li ONE electric vehicles, up from 6,604 units in the previous quarter and 2,896 units in the first quarter. The 5-year-old firm started deliveries of the Li ONE, its first model, at the end of 2019.

The company’s third-quarter revenue totaled 2.51 billion yuan, representing a quarter-on-quarter increase of 28.9%, according to the financial report.

Li Auto predicted that it will deliver 11,000 to 12,000 vehicles in this year’s last quarter, with quarterly total revenue likely to reach between 3.11 billion yuan and 3.39 billion yuan.

Earlier this month, the Beijing-based company announced a recall of 10,469 Li ONE cars over potential front suspension problems.

Li Auto’s stock initially surged in Friday trade in New York after its latest report came out, but later gave back all the gains and ended the day down 1.83%. Year-to-date the stock has nearly doubled on bullishness about prospects for China’s new energy vehicle market.

Contact reporter Ding Yi (yiding@caixin.com)

Related: Chinese Electric Carmaker Li Auto Teams Up With U.S. Chipmaker Nvidia

Share this article
Open WeChat and scan the QR code