Mei Ri Jing Ji Xin Wen·2025-11-26 12:41Core Insights - Li Auto reported a significant decline in revenue and profitability for Q3 2025, with total revenue of 27.4 billion RMB, a year-over-year decrease of 36.2% and a quarter-over-quarter decrease of 9.5% [1][2] - The company experienced a net loss of 624 million RMB, a stark contrast to a profit of 2.8 billion RMB in the same quarter last year [1][2] - Vehicle sales revenue also fell to 25.9 billion RMB, down 37.4% year-over-year and 10.4% quarter-over-quarter [2] Financial Performance - Gross profit for Q3 was 4.47 billion RMB, representing a 51.6% decline year-over-year and a 26.3% decline quarter-over-quarter [1][2][4] - The gross margin was reported at 16.3%, which would have been 20.4% if not for the impact of the MEGA recall [4][5] - Operating profit turned negative at -1.18 billion RMB, compared to a positive operating profit of 3.4 billion RMB in the previous year [2] Delivery and Sales - The total vehicle deliveries for Q3 were 93,211 units, a decrease of 39% year-over-year [2] - The company anticipates Q4 revenue to be between 26.5 billion RMB and 29.2 billion RMB, while market estimates are at 37.25 billion RMB [2] Product Development and Market Position - Li Auto's new models, the Li i8 and Li i6, have accumulated over 100,000 orders, and the Li MEGA was the top seller in the high-end electric vehicle market for Q3 [3][6] - The company invested 30 billion RMB in R&D for the quarter, with an annual forecast of 120 billion RMB, including over 60 billion RMB specifically for AI [3][6] Recall Impact - The MEGA recall, which involved 11,411 vehicles, is estimated to have cost the company approximately 1.11 billion RMB in Q3 [5][6] - The recall was initiated due to concerns over the coolant's anti-corrosion properties, which could lead to thermal runaway risks in the battery [6] Market Reaction - Following the earnings report, Li Auto's stock fell by 1.75% in pre-market trading [7]