Yahoo Finance Live anchors discuss second-quarter earnings for Li Auto.
BRAD SMITH: Let's talk a little cars here with just a few minutes until the opening bell. Chinese electric car maker Li Auto falling after announcing disappointing second quarter results and a deliveries estimate missing forecasts here. Of course, what's also important to remember in the backdrop here for any of the electric vehicle manufacturers in China is that the mandates are gonna be increasing over time here, too, so that they could get to this broader goal of 40% of all sales being represented by electric vehicles by 2030 in China.
And so of course, COVID-19, the pandemic, and even thereafter some of the shock waves with the variants that it also impacted the ability to produce. But now, as you see, more of the Li Autos of the world, the BAIC as well in China, really prioritizing their EV production push. That's where it's going to be even more of that competitive environment.
And I think the big thing here on the day is Li is down because of the deliveries. The deliveries were down year-over-year, and even-- well, not year-over-year, sequentially, I should say.
BRIAN SOZZI: Yeah, and the margins, too, down sequentially. Sales down 8.7% sequentially as well. And I would say, this company is just not winning the sexy battle in the EV space's coming out from China. You have XPeng working on flying cars that might come to fruition over the next 10 years. You have Tesla dominating the China electric vehicle market. And then you have Li Auto and NIO just floating around out there.
JULIE HYMAN: Well, Li only has two cars, right? The two models that are actually-- not two cars, two models of cars that are out right now. So that's something that maybe is holding them back versus the others.
In addition to that, Li's production is more centered in the Shanghai region than some of its competitors. And that's where we have seen most of the shutdowns. So their production has really been crimped by that. So that's something that has hurt it as well.
So you know, to your point, that they've got this big target of how much they want to capture of the global EV market, maybe they'll get there at some point, but they're going have to accelerate.
BRAD SMITH: Ooh, hey.
JULIE HYMAN: Good? You like that?
BRIAN SOZZI: Vroom, vroom.
JULIE HYMAN: All right, there we've got the opening bell here on this Monday morning. And Getty Images is ringing the bell. I mention that because we're gonna be talking to the CEO a bit later in the program, after that storied brand, I think we can say, came public again, returned to the public markets through a SPAC deal recently.
BRIAN SOZZI: You know where that picture? It's getting uploaded right to Getty Images. And maybe we'll put it in our story when we're [INAUDIBLE]
JULIE HYMAN: Yeah, probably like a dozen of those at least. And that's part of how they make their money--
BRIAN SOZZI: That's true.
JULIE HYMAN: --is from people like us, organizations like ours.
If we take a look at the opening bell prices this morning, we do have a little bit of a pullback in the major averages here. Retail, obviously, as we've been talking about, it's gonna be very important this week in terms of determining whether the rally that we have seen from the June lows does continue. There's a lot of debate right now about whether those June lows were the lows or not. We've been talking to a lot of folks about that. And there's a lot of debate on that point.