Investing.com– Hong Kong shares of Li Auto Inc (NASDAQ:) rose sharply on Thursday after the agency logged a bumper first-quarter revenue, whereas Chairman Li Xiang mentioned the electrical car maker has no plans to chop costs. 

Li Auto ‘s (HK:) shares jumped practically 16% to HK$114.70, monitoring the same in a single day bounce of their U.S. counterparts. The agency logged a internet revenue of 933.8 million yuan ($1= 6.33 yuan), in comparison with a internet lack of 10.9 million yuan final yr.

The determine was largely pushed by a staggering 96.9% soar in car gross sales to 18.33 billion yuan via the quarter, as the electrical carmaker benefited from an financial reopening in China, its largest market. The agency delivered over 52,000 automobiles within the quarter.

Li Auto additionally forecast deliveries of between 76,000 and 81,000 automobiles within the second quarter.  

Li Auto is a significant rival to Tesla Inc (NASDAQ:) in China, and is now going through heated competitors within the nation as Tesla sparked a value conflict to attract in additional consumers this yr. Tesla minimize the costs of its Shanghai-made Mannequin 3s and Mannequin Ys not less than 4 occasions since October, because it sought to seize extra of its largest market.

However Li has bucked the development in not trimming its EV costs this yr. Chairman and founder Li Xiang mentioned throughout a post-earnings name that the agency already thought-about its car pricing as “best,” and that the corporate has no plans to trim costs.

Chinese language EV makers have benefited from easing battery costs, which have been in flip pushed by weaker charges for batter-grade lithium. However different corporations comparable to BYD Co Ltd (HK:), Xpeng Inc (HK:) and NIO Inc (HK:) have seen a drop in margins this yr, amid growing competitors within the nation. The three shares rose between 0.7% to 1.8% on Thursday.

Tesla missed its first-quarter margins following a string of value cuts this yr. However CEO Elon Musk doubled down on the worth conflict, stating that the agency was focusing on market share over higher margins. 

China scaled again all anti-COVID measures initially of 2023, spurring a pointy restoration in shopper spending after three years of pent-up demand. The Chinese language vehicle sector specifically noticed a resurgence in gross sales, with electrical automobiles main the cost.