© Reuters Li Auto (LI) Drops After Updating Delivery Outlook
By Michael Elkins
Shares of Chinese electric vehicle maker, Li Auto (NASDAQ:) have fallen 2.2% in pre-market trading on Monday after the company released its updated 3Q delivery guidance.
LI had originally estimated that the company would deliver between 27,000 and 29,000 units. However, as a “direct consequence of the supply chain constraint”, updated guidance has LI delivering approximately 25,500 vehicles in the third quarter of 2022.
“The revision is a direct consequence of the supply chain constraint, while the underlying demand for the Company’s vehicles remains robust,” Li Auto said in a statement. “The Company will continue to closely collaborate with its supply chain partners to resolve the bottleneck and accelerate production.”
Meanwhile, rival electric car companies Nio (NYSE:) and Xpeng (NYSE:) jumped as Beijing announced an extension of tax breaks for electric car purchases.
To help maintain growth for electric cars, China’s Ministry of Industry and Information Technology and Ministry of Finance extended the period that new energy vehicles will be exempt from a purchase tax until Dec. 31, 2023. New energy vehicles include fully electric as well as plug-in hybrid cars.
Shares of Xpeng were about 3.5% higher in pre-market trade while Nio was up around 0.5%.
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