Zhong Guo Jing Ji Wang·2025-11-26 12:13Core Insights - Li Auto reported a challenging Q3 financial performance, with significant declines in key metrics, including a 36.2% year-on-year drop in revenue to 27.4 billion RMB and a net loss of 624 million RMB compared to a profit of 3.4 billion RMB in the same period last year [1][3][10] Financial Performance - Vehicle sales revenue decreased by 37.4% year-on-year to 25.9 billion RMB, primarily due to a reduction in vehicle delivery volumes [2][3] - Gross profit fell by 51.6% to 4.5 billion RMB, with a gross margin of 20.4% after accounting for recall costs [2][4] - Operating expenses increased slightly by 2.5%, reflecting ongoing operational costs despite the revenue decline [2] - The company maintained a cash reserve of 98.9 billion RMB, providing a solid foundation for future investments and stability [6][10] Strategic Developments - Li Auto has initiated a recall of 11,411 units of the 2024 Li MEGA model, which has impacted short-term profitability but is seen as a necessary step for user safety and brand integrity [4][6] - The company is shifting focus towards electric vehicles (EVs) with the launch of the Li i8 and i6 models, aiming to establish a dual strategy of "range-extended + pure electric" vehicles [7][8] - The VLA driver model, a self-developed advanced driver-assistance system, has shown high user engagement, with a monthly usage rate of 91% and significant improvements in driving mileage [9][10] Market Position - Despite short-term challenges, Li Auto continues to lead in the new energy vehicle sector, with a total revenue of 83.5 billion RMB over the first three quarters of the year [3][10] - The company's proactive approach to recalls and user safety is expected to enhance brand loyalty and mitigate potential crises in the long run [6][10] - The dual strategy of expanding both range-extended and pure electric offerings aligns with industry trends, positioning Li Auto favorably against competitors [8][10]