Shen Zhen Shang Bao·2025-11-27 04:31Core Insights - Li Auto reported a significant decline in both deliveries and revenue for Q3 2025, marking a return to losses after 11 consecutive profitable quarters [2][4] Delivery and Revenue Decline - In Q3 2025, Li Auto delivered 93,211 vehicles, a year-on-year decrease of 39.0% [2] - Vehicle sales revenue was 25.9 billion RMB (3.6 billion USD), down 37.4% from 41.3 billion RMB in Q3 2024 and down 10.4% from 28.9 billion RMB in Q2 2025 [2][3] - Total revenue for Q3 2025 was 27.4 billion RMB (3.8 billion USD), a decrease of 36.2% year-on-year and 9.5% quarter-on-quarter [2][3] Profitability and Financial Performance - Li Auto reported a net loss of 624.4 million RMB (87.7 million USD) in Q3 2025, compared to net profits of 2.8 billion RMB and 1.1 billion RMB in Q3 2024 and Q2 2025, respectively [2][3] - The gross margin for vehicles fell to 15.5%, down from 20.9% in Q3 2024 and 19.4% in Q2 2025 [4] Cost and Cash Flow Challenges - The company faced increased costs due to supply chain bottlenecks and the impact of the Li Auto MEGA recall, which affected gross margins [4] - Free cash flow was reported at -8.9 billion RMB (-1.3 billion USD) for Q3 2025, compared to 9.1 billion RMB in Q3 2024 [4] R&D Investment - Despite financial pressures, R&D expenses remained high at 3.0 billion RMB (418 million USD) for Q3 2025, up 15.0% year-on-year [4] - The increase in R&D spending was attributed to new model projects and adjustments in product configurations [4] VLA Driver Model Performance - The VLA driver model, an in-house developed assisted driving system, has seen high penetration and usage rates, with cumulative mileage exceeding 312 million kilometers [5][6] Market Performance - As of the report date, Li Auto's stock price increased by 0.84%, trading at 72.3 HKD per share, with a total market capitalization of 154.8 billion HKD [7]