Chinese manufacturer of electric vehicles (EV) Li Auto (LI -12.92%) reported better than expected third-quarter results, but the stock was still down 12.9% today, as of 1:05 p.m. ET. Electric vehicle sales in China have been relatively strong recently, and Li’s results reflect that.

Deliveries of nearly 153,000 vehicles in the third quarter represented an increase of 45.4% compared to the same period a year earlier. And Li reported earnings per share of $0.26, compared to Wall Street expectations of $0.19. Revenue of $6.1 billion also beat estimates of $5.9 billion, according to FactSet Search.

China’s electric vehicle market is strong

But Li Auto’s stock has already jumped 35% in the last three months alone. Investors are eyeing relatively strong demand in China, even as Chinese leaders have announced plans to boost the economy even further.

Li’s operational activities are actually profitable. It produced $1.6 billion from its operating activities and generated $1.3 billion in free cash flow in the third trimester. And it had cash of more than $15 billion at the end of the quarter. But investors likely decided to take advantage of some of those gains today, especially given the company’s disappointing guidance.

Looking ahead, Li said he expects revenue to be between $6.2 billion and $6.5 billion in the fourth quarter. But Wall Street was hoping for fourth-quarter revenue of $6.7 billion. Management estimates fourth-quarter electric vehicle deliveries will show a year-over-year increase of around 25% at the midpoint.

Some investors withdraw after publication of results

But even if volumes are increasing, strong competition and price wars appear to be reducing revenues. China’s economy could see accelerating growth in electric vehicle sales, but in the meantime, some investors were happy to take advantage of recent gains after the latest quarterly report.