Li Auto Rolls Out $35K Electric SUV

Company Overview - Li Auto launched the Li i6, a five-seat battery electric SUV, priced at 249,800 Chinese yuan (~$35,020), with deliveries starting on September 27, 2025, indicating the company's strategy to expand its electric vehicle lineup [1] - The company aims to compete in China's pure battery electric vehicle market, which is currently dominated by competitors like BYD and Tesla [1] Financial Performance - Li Auto's revenue for Q2 2025 fell 4.5% year-over-year to $4.2 billion, missing the consensus estimate of $4.4 billion, while adjusted EPS was $0.19, below expectations of $0.24 [2] - Vehicle sales decreased by 4.7% to $4.0 billion, despite a 2.3% increase in deliveries to 111,074 units [2] Future Projections - For Q3 2025, Li Auto projects revenue between $3.5 billion and $3.7 billion, representing a nearly 40% year-over-year decline and significantly below the $6.0 billion analyst consensus [3] - The company forecasts deliveries of 90,000-95,000 vehicles, a decline of 38%-41% from the previous year [3] Market Context - Deutsche Bank analysts predict Tesla will deliver approximately 72,000 vehicles in China in September, a 27% increase from August, while BYD is expected to deliver over 380,000 units, reflecting a 2% monthly rise but a 9% year-over-year drop [3][4] - Li Auto is projected to deliver around 35,000 vehicles, indicating a 23% monthly growth but a 35% annual decline [4]