Ideal Auto's Update on Product Release and Financial Results

TapTechNews May 20th news, Li Xiang, the CEO of Ideal Auto, stated during the first quarter earnings call that Ideal Auto will not release a pure electric SUV product this year and will postpone it until the first half of next year.

Regarding the pure electric strategy, Li Xiang also said that at this stage, in the sales of mid-to-high-end pure electric vehicles, self-operated supercharging piles are a necessary condition. Only when the number of self-operated supercharging piles reaches a similar level to that of Tesla is it the right time to introduce the product to the market. In addition, Ideal needs to upgrade and add more store display areas to support the sales of more models.

Li Xiang said that Ideal L6 has been widely recognized; under the new price strategy, Ideal L9, L8, and L7 have also shown a continuously improving performance. In general, we will be very optimistic about the monthly sales performance in the next step. After the price strategy adjustment, the order volume of L7, L8, and L9 is continuously increasing, and the company has no intention of reducing the price in the future.

TapTechNews previously reported that Ideal Auto today announced its financial results for the first quarter of 2024 as of March 31. The data shows that the revenue for this quarter is 25.6 billion yuan, which is in line with the market expectation of 25.58 billion yuan. The revenue in the same period last year was 18.79 billion yuan, an increase of 36.4% year-on-year and a decrease of 38.6% quarter-on-quarter. The net profit of Ideal Auto in this quarter is 591.1 million yuan, a decrease of 36.7% year-on-year and a decrease of 89.7% quarter-on-quarter. Excluding the US Generally Accepted Accounting Principles, the net profit is 1.3 billion yuan, a decrease of 9.7% year-on-year and a decrease of 72.2% quarter-on-quarter.