Li Auto Inc. reported unaudited fourth‑quarter and full‑year 2025 results, with quarterly revenue of RMB 28.8 billion (US$4.1 billion) and full‑year revenue of RMB 112.3 billion (US$16.1 billion). Vehicle deliveries fell 31.2% year‑over‑year to 109,194 units in the quarter and 18.5% year‑over‑year to 406,343 units for the year, down from 500,508 units in 2024. The company ended the year with a cash balance of RMB 101.2 billion, providing a substantial liquidity buffer for ongoing AI and product development initiatives.
The quarter’s gross margin was 17.8%, a decline from 20.9% in Q4 2024, reflecting compression amid higher production costs and the recall of the Li MEGA MPV. Operating loss for the quarter was RMB 442.6 million, and the company posted a net income of RMB 20.2 million, reversing the prior‑year loss. Earnings per share were not disclosed in the release, so a beat or miss relative to analyst estimates cannot be determined.
For the full year, Li Auto’s gross margin was 18.7%, down from 20.5% in 2024, and the company reported a net income of RMB 20.2 million for the year. Deliveries for the year were 406,343 units, a 18.5% decline from 500,508 units in 2024. The company’s cash position at year‑end remained robust at RMB 101.2 billion.
Management guided for Q1 2026 revenue of RMB 20.4 billion to RMB 21.6 billion, a year‑over‑year decline that signals a cautious outlook amid intensified competition in the premium EV segment. The guidance reflects the company’s focus on a new product cycle and the launch of third‑generation technology platform products in 2026.
Li Auto’s results highlight several headwinds: the transition to a new product cycle and heightened competition have driven a sharp decline in vehicle deliveries and revenue, while higher production costs and the Li MEGA recall have compressed margins. The company’s strong cash position and continued investment in AI—approximately 50% of its R&D spend—position it to capture opportunities in embodied AI and accelerate global expansion, but the current financial performance signals short‑term pressure on profitability.
"Following our proactive strategic adjustments in 2025, we have seen positive momentum across organizational efficiency, supply capability, and sales system since the fourth quarter." "2026 is the year when our third‑generation technology platform products will be delivered to the market. We are confident in the competitiveness of this year's products and technology, but we also see that competition in the new energy vehicle market is intensifying." "The company's R&D expenses are expected to remain at approximately 12 billion yuan, with AI‑related investments still accounting for 50%." "Our year‑end cash position remained robust at RMB101.2 billion, providing ample fuel for us to capture the immense opportunities in embodied AI while accelerating global expansion."
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