How did LI's Q4 2023 earnings surprise investors?

Li Auto's (LI) Q4 2023 earnings report exceeded investor expectations in several key areas, reflecting the company's robust growth and market performance. 1. **Revenue Surpassed Expectations**: Quarterly total revenues reached RMB44.3 billion (US$6.1 billion), surpassing the estimated revenue of $5.48 billion. This indicates a strong revenue stream and suggests that Li Auto has outperformed market expectations. 2. **Vehicle Deliveries Show Strong Growth**: Li Auto delivered 158,696 vehicles in Q4 2024, marking a 20.4% year-over-year increase. This growth in deliveries, coupled with a full-year delivery count of 500,508 vehicles, demonstrates the company's continued momentum and market penetration. 3. **Market Leadership and Expansion**: The company's expansion into new cities and retail stores, along with the addition of super charging stations, underscores its commitment to growth and customer service. This strategic expansion likely contributed to its strong financial performance. 4. **Financial Highlights**: Vehicle sales revenue increased by 5.6% and 3.2% quarter-over-quarter, reaching RMB42.6 billion, indicating a healthy sales trend. The vehicle margin of 19.7% in Q4 2024, although slightly lower than previous quarters, still reflects efficient cost management and profitability. Overall, Li Auto's Q4 2023 earnings report showcased the company's ability to exceed market expectations, driven by strong revenue growth, vehicle deliveries, and strategic market expansion.