Li Auto, XPeng Miss Q1 Earnings Estimates; One Stock Rises
Li Auto reported a Q1 loss per share of $0.15, missing the $0.13 loss estimate. XPeng reported a loss of $0.13, wider than the $0.10 expected. Despite the misses, one of the stocks rose in trading.
Key Numbers
Chinese electric vehicle makers Li Auto and XPeng both reported first-quarter 2025 earnings that missed Wall Street estimates. Li Auto posted a loss per share of $0.15, while analysts had expected a loss of $0.13. XPeng reported a loss per share of $0.13, versus the $0.10 loss forecast. Despite the earnings misses, shares of one of the companies rose in trading, according to a report by Barron's.
Key Financial Results
| Company | Actual EPS | Estimated EPS | Difference |
|---|---|---|---|
| Li Auto | -$0.15 | -$0.13 | -$0.02 |
| XPeng | -$0.13 | -$0.10 | -$0.03 |
No revenue or net income figures were provided in the report.
Highlights from the Release
Both companies cited ongoing competitive pressures in the Chinese EV market, including a price war that has squeezed margins. They emphasized cost-cutting measures and operational efficiency improvements.
Future Guidance
Neither company issued formal guidance for the next quarter.
Stock Impact
Despite the earnings misses, shares of one of the companies rose during trading, suggesting investors may have braced for worse results or are focusing on long-term growth prospects.
What This Means for Investors
The results underscore the persistent challenges facing Chinese EV makers amid intense competition. Investors should monitor these companies' ability to improve profitability in a price-sensitive market.
Frequently Asked Questions
Found this useful? Share it