Li Auto (LI) looks to surpass rivals in China by 2024

Li Auto (NASDAQ: LI) announced Tuesday evening its intention to surpass the sales of BMW, Mercedes-Benz, and Audi in China by 2024. This ambitious goal comes as the emerging Chinese automaker accelerates the introduction of new vehicle models and ramps its manufacturing efforts.

"We would strive to become the no.1 premium car brand in China in 2024 in terms of sales," Li Auto's CEO Li Xiang told investors on Tuesday night, he added that the company anticipates reaching a monthly delivery rate of 40,000 units in the fourth quarter, following an increase in production.

Li Auto is set to introduce its first pure battery electric model, the MEGA, by the end of 2023. In addition, Li Xiang has indicated the company's plans to unveil four additional models in 2024, including three EVs.

For the third quarter in a row, Li Auto reported a favorable net income, marking a consistent positive trend. Notably, the net income for the second quarter surged by 147% compared to the first quarter.

The company delivered 173,251 vehicles in the first seven months of this year, showing an impressive growth of 145% compared to the same period last year. Looking ahead, the company aims to deliver over 100,000 vehicles during the upcoming third quarter.

Due to a price war started by Tesla (NASADAQ: TSLA) in January, BMW, Mercedes-Benz, and Audi have been offering their vehicles at significant markdowns through dealerships. As a result, their monthly sales figures have varied, ranging from 31,500 to 70,000 units each, according to data from China Association of Automobile Manufacturers.

Shares of LI are up 0.87% in pre-market trading Wednesday morning.

By Michael Elkins | [email protected]

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