Benzinga·2025-11-26 09:26Core Insights - Analyst sentiment for Li Auto Inc. has turned bearish ahead of its third-quarter earnings call, with expectations of significant revenue decline [1] Revenue Decline - Analysts predict that Li Auto will report its largest-ever revenue decline, with an anticipated 38% year-on-year decrease, marking the steepest decline since its NYSE listing in 2020 [2] - The company delivered over 93,211 vehicles in Q3, reflecting a 39% year-on-year decline, attributed to increasing competition in the Extended Range Electric Vehicle (EREV) sector [3] Competitive Landscape - Analysts highlight that competitors such as Xpeng Inc. and Xiaomi Corp. have EREV models in development, suggesting that Li Auto must adapt its product strategy to enhance customer appeal [4] Previous Earnings Performance - In Q2, Li Auto reported revenue of $4.2 billion, a 4.5% year-on-year decline, falling short of the analyst consensus of $4.4 billion for the quarter [5] Operational Challenges - The company has recently laid off multiple employees following a recall of its Mega MPV due to battery fire risks, with over 11,411 units recalled due to coolant leakage issues [6] Strategic Partnerships - Li Auto has signed a deal with Hesai Technology to become its sole supplier of LiDAR technology for all upcoming models, indicating a strategic move to enhance its technological capabilities [7] Market Performance - Li Auto's stock price saw a 1.10% increase to $18.32 at market close, but experienced a slight decline of 0.17% to $18.29 in after-hours trading [7]