Li Auto Reports Significant Q4 Earnings Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Source: Benzinga
Li Auto Inc's stock fell 5.23% as it crossed below the 5-day SMA amid broader market weakness, with the Nasdaq-100 down 0.94% and the S&P 500 down 1.04%.
The company's Q4 2025 earnings report revealed a 35% year-over-year decline in revenue to 28.8 billion yuan ($4.11 billion), significantly missing analyst expectations of 42.8 billion yuan. This decline was driven by reduced deliveries and weak market demand, leading to a gross margin contraction from 19.7% to 16.8%. Additionally, Li Auto reported an adjusted operating loss of 188.4 million yuan ($26.9 million), a stark contrast to a profit of 4.2 billion yuan in the previous year, indicating severe profitability challenges. The company anticipates Q1 2026 revenue to decline further, projecting between 20.4 billion and 21.6 billion yuan, reflecting ongoing market difficulties.
These results highlight the significant pressures Li Auto faces in a competitive electric vehicle market, raising concerns about its future performance and market share. Investors will need to monitor how the company adapts to these challenges and its strategies for recovery.
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Analyst Views on LI
Wall Street analysts forecast LI stock price to rise
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 12.020
Low
15.00
Averages
20.51
High
32.00
Current: 12.020
Low
15.00
Averages
20.51
High
32.00
About LI
Li Auto Inc is a holding company primarily engaged in the design, development, manufacturing, and sales of smart electric vehicles. The Company’s main products include the Li L9, Li L8, Li L7, Li L6, and Li MEGA, encompassing six-seat sport utility vehicles (SUVs), five-seat SUVs, and multi-purpose vehicles (MPVs). The Company is also engaged in research and development activities relating to intelligent vehicle technologies, the design, development and manufacturing of various components and systems for new energy vehicles, and the provision of value-added services such as charging, vehicle maintenance and repair. The Company mainly conducts its businesses within domestic market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Positioning: The Li L8, as a premium smart electric vehicle, aims to attract a broader user base, with Li Auto enhancing its market competitiveness by continuously expanding its product lineup, particularly targeting family users.
- Commitment to Innovation: Li Auto is dedicated to enhancing user experience through proprietary range extension technology and smart solutions, further driving the company's technological leadership in the new energy vehicle sector.
See More
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- New Model Launch: On June 23, Li Auto launched its all-new five-seat flagship SUV, the Li L8, priced at RMB 369,800 for the Ultra trim and RMB 429,800 for the Livis trim, aiming to strengthen its position in the high-end smart EV market.
- Delivery Growth: According to the June 1 delivery update, Li Auto delivered 33,350 vehicles in May, raising cumulative deliveries to 1,702,792 as of May 31, indicating strong market demand and brand recognition.
- Strong Order Intake: The newly launched Li L9 Livis received over 10,000 orders within two weeks of its release, reflecting high consumer interest and market acceptance, which is expected to drive sales growth for the company.
- Infrastructure Expansion: As of May 31, Li Auto operates 498 retail stores, 543 service centers, and 4,088 supercharging stations across China, enhancing its service network and improving customer experience and brand loyalty.
See More
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- Delivery Decline: Li Auto delivered 30,895 vehicles in June 2026, reflecting a 14.8% year-over-year decline and a 7.4% month-over-month decrease, indicating potential market demand weakness that could impact short-term revenue performance.
- Cumulative Delivery Growth: Year-to-date, Li Auto's cumulative deliveries reached 1,733,687 vehicles, representing a 29.6% increase from last year, suggesting that the company maintains a strong overall growth trajectory in the electric vehicle market despite recent delivery fluctuations.
- New Model Launch: On June 23, Li Auto launched the all-new Li L8 flagship SUV featuring connected zero-gravity seats, scheduled for release in July 2026, aimed at enhancing product competitiveness and attracting more consumers.
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See More
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- New Model Launch: On June 23, Li Auto unveiled the all-new flagship SUV Li L8, featuring zero-gravity seats, an 800V active suspension system, and a 5C range extension system, marking a significant technological innovation that is expected to attract more high-end consumers.
- Charging Infrastructure Expansion: As of June 30, Li Auto operated 4,097 supercharging stations with 22,593 charging stalls across China, significantly enhancing user charging convenience and strengthening the brand's competitive edge in the market.
- Retail Network Growth: Li Auto has established 495 retail stores and 536 service centers in 160 cities, with authorized service shops in 220 cities, indicating a continuous enhancement of its service capabilities nationwide, which is crucial for improving customer satisfaction and brand loyalty.
See More
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- Battery Swap Network Expansion: Nio's Firefly brand has begun beta testing fifth-generation battery swap stations across major Chinese cities, aiming to enable network sharing with Onvo and Firefly vehicles, although growth in Europe has nearly stalled, with Nio prioritizing the Chinese market through 2028.
See More
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- Enhanced Range: The latest L8 features a roughly 72.7 kWh 5C battery, delivering a CLTC all-electric range of about 430 km and a combined range of approximately 1,670 km, with a 0-100 km/h acceleration time of around 5.3 seconds, showcasing robust performance capabilities.
- Market Competitiveness: The L8 integrates Li Auto's latest AD Pro/AD Max driver-assistance hardware and in-vehicle computing systems, positioning it competitively against higher-end “9-series” SUVs in the Chinese market, reflecting the company's ongoing technological innovation.
- Optimistic Sales Outlook: Deutsche Bank highlighted that the L8's pricing is lower than expected, forecasting average monthly sales of about 5,000 units for the new-generation L8, despite Li Auto's stock price declining over 20% in the past six weeks.
See More
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- New Model Launch: Li Auto officially launches the all-new Li L8, available in Ultra and Livis trims priced at RMB 369,800 and RMB 429,800 respectively, which is expected to further solidify its leadership in China's new energy vehicle market.
- Delivery Timeline: Deliveries of the new vehicle will commence within this week, quickly addressing market demand and showcasing Li Auto's efficient execution post-launch, which is likely to enhance customer satisfaction and brand loyalty.
- Market Positioning: The Li L8, as a premium smart electric vehicle, aims to attract a broader user base, with Li Auto enhancing its market competitiveness by continuously expanding its product lineup, particularly targeting family users.
- Commitment to Innovation: Li Auto is dedicated to enhancing user experience through proprietary range extension technology and smart solutions, further driving the company's technological leadership in the new energy vehicle sector.
See More
