Li Auto (LI) reported weaker-than-expected first-quarter earnings and guided low on the current quarter, as the once-hot China electric vehicle maker struggles with increased competition. Li Auto stock fell early Monday.

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XPeng (XPEV) reports Q1 results early Tuesday. XPEV stock rose before the open, along with Nio (NIO) and newly public Zeekr (ZK). China EV and battery giant BYD (BYDDF) flashed a buy signal late last week. Tesla (TSLA) tilted higher.

Li Auto Earnings

Li Auto earned 17 cents per U.S. ADR, down 10.5% vs. 19 cents a year earlier. Wall Street had expected 24 cents. Revenue grew 36% vs. a year earlier to $3.6 billion, modestly meeting.

As previously disclosed, Li Auto delivered 80,400 vehicles in Q1, up 53% vs. a year earlier but down 39% vs. Q4. The decline vs. Q4 reflected typical softness in China auto sales around Lunar New Year holidays, but also weak March orders.

The Mega minivan, Li’s first fully battery electric vehicle (BEV), has seen poor demand. The bulk of Li’s sales come from SUV line of extended range EVs, essentially a form of plug-in hybrid.

Li Auto expects Q2 deliveries of 105,000-110,000 vehicles, up 21%-27% vs. year earlier earlier, but below analyst estimates. Li already delivered 25,787 vehicles in April, so the Q2 guidance assumes May-June deliveries of 79,213-84,213.

Revenue should be $4.1 billion-$4.3 billion, up 4%-9% vs. a year earlier. Analysts had expected $5.17 billion.

In recent weeks, Li Auto announced hefty price cuts on all its vehicles, except for the brand-new L6 SUV, its smallest and most-affordable vehicle.

Earlier this month, the EV maker announced it would lay off more than 18% of its workforce.

Li Auto Stock

Li Auto stock fell 4.4% to 23.80 in premarket trade, nearing a 52-week low of 23.04 set on April 25. Last week, LI stock fell 6.7% to 24.89.

XPeng Stock

XPeng stock rose 4% before Monday’s open, signaling a move from the 50-day line. Early Tuesday, XPeng is expected to a report a 33-cent loss per U.S. ADR vs. a 38-cent loss a year earlier. Revenues should jump nearly 50% to $857 million.

Other EV Stocks

Nio stock climbed about 1% early Monday, continuing to hold above the 50-day line but well below its 200-day. Shares climbed 4.1% to 5.28 last week. Nio earnings are due May 29. Last week, Nio formally unveiled the first model from its more-affordable Onvo brand. The L60 crossover is a new Model Y rival.

Zeekr stock advanced 2.6%. Zeekr, a China EV brand of auto giant Geely, came public in the U.S. earlier this month at 21 a share. ZK stock jumped to 29.36 intraday on May 13, but then pulled back.

BYD stock, which trades over the counter in the U.S., is not yet active. Shares rose 1.2% to 28.73 last week, holding support at the 200-day line, and breaking a downtrend in a handle, offering an early entry. Investors could view the recent action as a high handle to a short consolidation or a traditional handle to a base going back to late 2023. Either way, the official buy point is 29.52.

Tesla stock edged higher early Monday. Shares bounced 5.3% last week to 177.46, rebounding from the 50-day line. Tesla faces growing competition from Xiaomi, Nio and BYD in China.

Please follow Ed Carson on X/Twitter at @IBD_ECarson and Threads at @edcarson1971  for stock market updates and more.

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