Core Insights - Li Auto Inc. delivered 33,181 vehicles in November 2025, bringing cumulative deliveries to 1,495,969 as of November 30, 2025 [1] - The company anticipates that the monthly production capacity for the Li i6 will reach 20,000 units by early next year and plans to release OTA 8.1 in early December 2025 [2] - Li Auto operates 544 retail stores in 157 cities, 556 servicing centers, and 3,614 supercharging stations with 20,027 charging stalls across China as of November 30, 2025 [3] Company Overview - Li Auto Inc. is a leader in China's new energy vehicle market, focusing on designing, developing, manufacturing, and selling premium smart electric vehicles [4] - The company's mission is to create a mobile home and happiness, emphasizing innovations in product, technology, and business models to provide safe and convenient products and services [4] - Li Auto is recognized for successfully commercializing extended-range electric vehicles in China while also developing battery electric vehicle platforms [4] - The current model lineup includes a high-tech flagship family MPV, four Li L series extended-range electric SUVs, and two Li i series battery electric SUVs, with plans for further expansion [4]

理想第二个十年，三大关键选择： 李想25Q3电话会议画饼压缩版： 组织： 从25Q4回归创业公司管理模式，放弃过去三年采用的职业经理人模式。 职业经理人模式成功三要素：1.行业和技术周期相对稳定。2.企业的行业地位领先且稳固。3.创始人 和创业团队没动力或不在了。案例：苹果/微软 创业公司模式成功三要素：1.行业和技术周期在发生巨大的变化。 2.行业格局不确定，企业还不是领 先者。 3.创始人和创业团队每天还在投入的努力工作，充满动力。案例：英伟达/特斯拉 产品： 停留在电动车，竞争逻辑只是参数与功能堆砌。未来10年具身智能最有价值的产品，一定是 具备自动和主动能力的汽车，提供飞机头等舱的服务与母亲般无微不至的照顾。 技术： 数字世界AI与物理AI是完全不同的系统能力。 具身智能系统包含：感知（眼睛、耳朵）模型（大脑）操作系统（神经）算力（心脏）本体（身 体）。行业急切需要改变的很多： 1.感知：行业现在的3D有效感知距离（非理论最大）为100多米，如果升级成人眼工作原理相似的3D 传感器，有效距离可以扩大2~3倍，今天辅助驾驶50%以上的常见问题将解决。3D感知不仅限于自动 驾驶的领域，在车外和车主的主动交 ...

Investment Rating - The report maintains a "Recommended" investment rating for the company [1]. Core Views - The company is currently facing pressure on sales and performance, particularly with the L series needing revitalization. The anticipated product upgrades in 2026 are seen as crucial for overcoming current challenges [4][7][8]. Summary by Sections Financial Performance - In Q3 2025, the company reported revenue of 27.4 billion yuan, a decrease of 36.2% year-on-year and 9.5% quarter-on-quarter, with a net loss of 6.2 billion yuan [4]. - The company delivered 93,000 vehicles in Q3 2025, down 39.0% year-on-year and 16.1% quarter-on-quarter. The automotive sales revenue was 25.9 billion yuan, reflecting a decline of 37.4% year-on-year and 10.4% quarter-on-quarter [7]. - The gross margin for automotive business in Q3 was 15.5%, down 5.4 percentage points year-on-year and 3.9 percentage points quarter-on-quarter. Excluding the impact of the MEGA recall, the gross margin would have been 19.8% [7]. Future Projections - Revenue projections for 2025 to 2027 have been adjusted to 9 billion, 36 billion, and 60 billion yuan respectively, reflecting a significant downward revision from previous estimates [8]. - The company expects Q4 2025 deliveries to be between 100,000 and 110,000 units, with October's deliveries at 32,000 units [7]. Product Strategy - The L series product upgrades are deemed essential for the company to navigate its current difficulties, with expectations for enhancements in features such as high-level autonomous driving capabilities and battery technology [7][8]. - The report highlights that the L9 model, which has been on the market for over three years, requires significant upgrades to improve its competitiveness [7]. Valuation Metrics - The company’s estimated P/E ratio for 2025 is 154.2, indicating a high valuation relative to earnings, while the P/B ratio is projected to be 2.0 [6][12].

Core Viewpoint - Li Auto announced the launch of its AI glasses, Livis, which will be unveiled on December 3, showcasing seamless integration with vehicle systems [2] Group 1: Product Features - Livis AI glasses feature multiple color options, dual cameras for object recognition and video recording, and a microphone for music recognition [2] - The glasses can project real-time vehicle data such as battery level, range, and navigation information onto the lenses, and allow remote control of vehicle functions like opening electric sliding doors and pre-conditioning the cabin [2] Group 2: Market Context - Li Auto's entry into the AI glasses market follows Xiaomi's launch of its own AI glasses on June 26, which were positioned as a next-generation personal smart device [2] - Xiaomi's AI glasses sold 31,000 units in the first week, capturing 12% of the overall AI/AR market share, indicating strong demand and market potential for such products [2] - The collaboration between AI glasses and automotive ecosystems is highlighted, suggesting potential synergies for companies with established automotive operations [2]

Core Viewpoint - 2025 is expected to be a challenging year for Li Auto, but the company demonstrates strong operational resilience despite fluctuations in quarterly financial results, maintaining a leading position among new energy vehicle manufacturers [1] Financial Performance - Li Auto reported a quarterly revenue of 27.4 billion yuan, with a cumulative revenue of 83.5 billion yuan for the first three quarters, maintaining its leadership in the new energy vehicle sector [1] - The company recorded a gross margin of 15.5%, which increases to 19.8% when excluding the impact of a recall cost of approximately 1.1 billion yuan for the Li Auto MEGA [1] Strategic Decisions - Li Auto's founder, Li Xiang, made three key decisions during the third-quarter earnings call, marking a significant turning point for the company as it enters its second decade [1] - The company has upgraded its vision to become a "globally leading embodied intelligence enterprise," indicating a fundamental shift in product positioning [3] Product Development and Innovation - Li Auto has established a dual-energy product strategy with the Li ONE and L series, and the introduction of the Li MEGA and i series has created a complete pure electric matrix [3] - The company aims to transform cars into "embodied intelligent products" that provide emotional and cognitive capabilities, moving beyond traditional transportation roles [5] Technological Advancements - Li Auto plans to overcome key technological bottlenecks in three areas: perception, model optimization, and hardware innovation, with a focus on enhancing autonomous driving capabilities [6] - The company is developing a self-researched M100 chip tailored for embodied intelligence, expected to enhance performance and cost efficiency, set to be deployed in vehicles next year [6][8] Research and Development Investment - Li Auto's total R&D investment for the year is projected to reach 12 billion yuan, with over 6 billion yuan allocated specifically for artificial intelligence [8] - The company has a strong cash reserve of 98.9 billion yuan, providing substantial support for its R&D efforts in embodied intelligence [8] Future Outlook - Li Auto is committed to becoming the best-performing company in the field of embodied intelligence within the next 3-5 years, with a clear technological direction and a return to its entrepreneurial roots [8]

Core Viewpoint - Li Auto reported a significant decline in revenue and net profit for Q3 2025, indicating ongoing challenges in vehicle deliveries and financial performance [2][3][4]. Financial Performance - Total revenue for Q3 2025 was 27.4 billion RMB, a decrease of 36.2% year-on-year and 9.5% quarter-on-quarter [2][3]. - Net loss reached 624 million RMB, a stark contrast to a net profit of 2.8 billion RMB in the same period last year [2][3]. - Vehicle sales revenue fell by 37.4% to 25.9 billion RMB, with a vehicle gross margin dropping from 20.9% to 15.5% [3][4]. Delivery and Production - Total vehicle deliveries in Q3 2025 were 93,211 units, down 39.0% year-on-year, marking the second consecutive quarter below 100,000 units [2][4]. - The company anticipates Q4 2025 vehicle deliveries to be between 100,000 and 110,000 units, representing a year-on-year decrease of 30.7% to 37.0% [5]. Cash Flow and Operational Efficiency - Operating cash flow for Q3 2025 was -7.4 billion RMB, compared to 11 billion RMB in the same period last year [4]. - Free cash flow also deteriorated to -8.9 billion RMB from a positive 9.1 billion RMB year-on-year, attributed to reduced cash receipts from customers and increased inventory payments [4]. Product and Market Position - Despite challenges, the company reported over 100,000 orders for the Li i8 and i6 models, with the i6 positioned competitively in the market [4]. - The Li i6, launched in September, features a starting price of 249,800 RMB and offers competitive specifications, including a 720 km range [4]. Future Outlook - For the full year 2025, the expected total vehicle deliveries are projected to be between 397,000 and 407,000 units, a decline of approximately 20% from 2024 [5].

Domestic News - In November, the manufacturing PMI was reported at 49.2%, an increase of 0.2 percentage points from the previous month, indicating an improvement in economic conditions [2] - Large enterprises had a PMI of 49.3%, down 0.6 percentage points from last month, while medium and small enterprises reported PMIs of 48.9% and 49.1%, respectively, with increases of 0.2 and 2.0 percentage points, both remaining below the critical point [2] Industry News - The 23rd Guangzhou International Auto Show attracted 855,000 visitors, featuring 93 new car launches and a total of 1,085 vehicles on display, with 629 of them being new energy vehicles, accounting for 58% of the total [4] - A meeting on the standardization of power battery recycling was held in Ningde, emphasizing the importance of establishing a standardized system to support the high-quality development of the new energy industry and promote a green and low-carbon transformation of manufacturing [3] International News - Volkswagen Group appointed Ludwig Fazel as the new head of group strategy, effective December 1, 2025, who will report directly to the CEO [5] - Hyundai Motor Group announced a new collaboration with Michelin to accelerate the development of next-generation tire technology, continuing their previous partnerships [6] - Tesla's FSD testing in Spain has progressed, with the country becoming a key hub for testing under the ES-AV plan, allowing for remote monitoring and expanding the fleet of vehicles authorized for public road testing [7] - The UK saw a significant decline in vehicle production in October, with a 30.9% year-on-year drop to 62,116 units, including a 23.8% decrease in passenger car production [8] Company News - Mahindra launched a new seven-seat electric SUV, the XEV 9S, priced at approximately 2 million Indian Rupees (around 158,300 RMB), aiming to capture a larger market share in India's electric vehicle sector [11] - Genesis confirmed the production of its first mid-engine supercar, the Magma GT, and plans to introduce a full range of derivative models to compete with the Porsche 911 [12] - Xiaomi Auto announced the opening of 17 new stores in November, bringing the total to 441 across 131 cities, with plans for 36 more stores in December [14] - Li Auto entered the Russian market with the official pricing of its L6, L7, and L9 series models, ranging from 626,000 to 862,000 RMB, in collaboration with a local partner for sales and service [15] - Ganfeng Lithium announced plans to issue $100 million in exchangeable notes to the African Development Fund, which can be converted into preferred shares of its subsidiary [16]

New Car Launches - Leap Motor Lafa5 launched with a limited-time price of 92,800-116,800 yuan, featuring a compact design and advanced technology including a 600km range and laser radar assistance [2][12] - Xpeng ET5 launched with a limited-time replacement price of 134,900-149,900 yuan, emphasizing configuration and cost-effectiveness, with a 210km electric range [12][21] - New Mercedes EQE launched with prices ranging from 478,000 to 627,000 yuan, maintaining a luxurious design and advanced features [22][30] Company Dynamics - NIO reported Q3 revenue of 21.79 billion yuan, a 16.7% year-on-year increase, with a gross margin of 13.9%, the highest in three years [31][34] - Hesai Technology launched a high-performance intelligent control chip for laser radar, achieving full self-research capabilities across key components [35][39] - Li Auto reported Q3 revenue of 27.4 billion yuan, with a delivery guidance of 100,000 to 110,000 vehicles for Q4, while facing increased competition in the extended-range vehicle segment [40][46] - Pony.ai achieved single-vehicle profitability in its Robotaxi business, with a revenue increase of 72% year-on-year [47][52] - Avita submitted a listing application to the Hong Kong Stock Exchange, aiming to accelerate its growth in the smart vehicle market [53][60] - XPeng's flying car project has successfully produced its first land carrier vehicle, indicating a significant step towards mass production [61][66] - Tesla has deployed millions of self-developed AI chips, planning to release a new chip annually, enhancing its technological leadership [68][74]

Investment Rating - The report maintains a "Recommendation" rating for the automotive sector, indicating a positive outlook for investment opportunities in the coming quarters [5]. Core Insights - The automotive sector is expected to stabilize in Q4 2025, with potential upward movement in Q1 2026, driven by policy direction, profit expectations, and valuation adjustments [1]. - Recent retail performance has been subdued due to the impact of trade-in incentives, and the Guangzhou Auto Show has had limited effect on new car sales [1]. - The report highlights the rebound of state-owned enterprises in vehicle manufacturing, influenced by catalyst factors [1]. Data Tracking - In late November, the discount rate for vehicles increased slightly to 10.1%, with a month-on-month rise of 0.1 percentage points and a year-on-year increase of 1.6 percentage points [3]. - October wholesale vehicle sales reached 2.96 million units, a year-on-year increase of 7.5% and a month-on-month increase of 3.6% [3]. - Retail sales in October were 2.09 million units, reflecting a year-on-year decline of 9.2% and a month-on-month decline of 6.4% [3]. Market Performance - The automotive sector saw a weekly increase of 3.33%, ranking 11th among sectors [9]. - The overall market indices also showed positive movement, with the Shanghai Composite Index rising by 1.40% and the ChiNext Index increasing by 4.54% [9]. Industry News - As of October 2025, the automotive industry reported a profit of 389.5 billion yuan, a year-on-year increase of 4.4%, with total revenue reaching 8,877.8 billion yuan [29]. - The inventory level for passenger vehicles at the end of October was 3.41 million units, indicating a seasonal increase in stock [29]. - New energy vehicle company Li Auto announced plans to release AI-powered accessories, indicating a trend towards integrating advanced technology in vehicles [29].

Core Viewpoint - The article focuses on the evolution of Li Xiang's communication style with investors, highlighting a shift from a defensive posture to a more collaborative and constructive approach in discussing the company's vision and future. Group 1: Communication Evolution - In the April 2024 L6 launch, Li Xiang expressed frustration over being misunderstood by experts and the media, emphasizing that he aims to build cars for users rather than for the capital market [1] - By the November 2025 Q3 conference call, Li Xiang demonstrated a willingness to engage deeply with investors, spending nearly 15 minutes sharing his thoughts on the company's future and expressing gratitude for their support during challenging times [2] - The change in Li Xiang's communication reflects a transition from viewing investors as outsiders to recognizing them as partners in achieving a shared vision, indicating a strategic shift in how the company interacts with its stakeholders [3] Group 2: Strategic Intent - Li Xiang's remarks suggest a commitment to making Li Auto a leader in the field of embodied intelligence, aiming to provide high user value over the next 3 to 5 years [2] - The emphasis on maintaining the company's essence while adapting communication strategies indicates a desire to coexist with the market without compromising core values [2] - Li Xiang's reflections on refining his approach suggest a focus on effective communication that resonates with investors, aiming to align their understanding with the company's long-term goals [3]