Li Auto Inc. on Friday forecast higher delivery of vehicles and a rise in revenue in the fourth quarter, banking on higher production and better cost management.
The electric vehicle maker saw its third-quarter net loss widen to 1.65 billion yuan ($237.55 million) compared with a net loss of 21.5 million yuan a year ago.
Most automakers have been hit by rising material costs and a global chip shortage, but Li Auto said that it was expecting higher deliveries and production as global supply chain issues ease.
Rivals Xpeng Inc. and Nio Inc. also reported wider losses owing to soaring inflation.
Li Auto said on Friday it expects to deliver between 45,000 and 48,000 vehicles in the fourth quarter, an increase of up to 36 percent from a year ago, with revenues seen jumping as much as 66 percent to between 16.51 billion yuan ($2.38 billion) and 17.61 billion yuan.
"Looking ahead, we are optimistic that with rapid production ramp-up, rigorous execution, and responsible cost management, we will realize greater economies of scale and further drive down costs, putting us back on track to hit our profitability inflection point," Tie Li, the automaker's CFO, said.
The company's revenue from vehicle sales jumped 23 percent from a year ago to 9.05 billion yuan in the reported quarter, while margins dropped to 12% from 21.1 percent.
It delivered 26,524 cars in the quarter ending Sept. 30, with October and November sales already at more than 25,000 units.