Li Auto Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.08%.
Did LI Beat Earnings? Q3 2025 Results
Li Auto delivered one of its most difficult quarters in recent memory, posting a Q3 2025 net loss of $90.29 million and an EPS of negative $0.05, a sharp reversal from net income of $407.84 million in the year-ago period. Revenue fell 36.2% year-over-year to $3.96 billion as vehicle deliveries tumbled 39.0% to 93,211 units, pressured by intensifying competition and the costly recall of the Li MEGA MPV, which alone dragged reported gross margin down to 16.3% from an adjusted 20.4%. The recall's financial shadow loomed over nearly every line of the income statement, pushing operating loss to $170.22 million and free cash flow to negative $1.29 billion for the period. Meanwhile, <a href="https://247wallst.com/investing/2025/11/25/shares-of-nio-slip-after-mixed-q3-earnings/">rival EV makers</a> are navigating similarly choppy conditions across the sector. Looking ahead, Li Auto guided Q4 deliveries of 100,000 to 110,000 vehicles and revenue of $3.83 billion to $4.22 billion, implying continued year-over-year declines as the company works through supply chain bottlenecks while ramping production of its new BEV lineup, including the recently launched Li i6.
- 39.0% YoY decrease in vehicle deliveries to 93,211 units drove revenue decline
- Li MEGA recall costs depressed vehicle margin by approximately 4.3 percentage points
- Supply chain bottlenecks constrained production of newer BEV models
- Higher average selling price from product mix partially offset lower delivery volumes sequentially
- Intensifying market competition in China's NEV market
“Our BEV portfolio gained strong momentum during the third quarter, demonstrating our top-tier product-definition capabilities and solid product strength. Orders for Li i8 and Li i6 have exceeded 100,000 in aggregate. On the AI front, our VLA Driver large model, empowered by world model and reinforcement learning, has achieved industry-leading user adoption with monthly usage rate reaching 91% in October. With our user-centric product philosophy and robust R&D capabilities, we are confident in achieving our long-term vision and strategic objectives.”
Li Auto CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, Li Auto expects deliveries of 100,000 to 110,000 vehicles, representing a YoY decrease of 37.0% to 30.7%. Total revenues are expected to be between RMB26.5 billion and RMB29.2 billion, representing a YoY decrease of 40.1% to 34.2%. The company is proactively working with supply chain partners to fulfill demand for Li i8 and Li i6 amid supply chain bottlenecks. Management remains committed to product and technology innovation while driving sustainable growth.
LI YoY Financials
LI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.