3 6 Ke·2025-11-27 04:51Core Viewpoint - Li Auto reported a significant decline in revenue and a net loss for Q3 2025, primarily due to a recall of the 2024 Li MEGA model, which impacted profit margins and overall performance [1][3][7]. Financial Performance - Q3 2025 revenue was 27.4 billion RMB, a year-on-year decrease of 36% [1]. - The net loss for Q3 2025 was 624 million RMB, marking a shift from profit to loss compared to previous periods [1]. - Total vehicle deliveries in Q3 2025 were 93,211 units, down 39% year-on-year [3]. Product and Market Challenges - Li Auto's market share in the extended-range electric vehicle segment has been declining, with a drop to 7.5% in October 2025 [3]. - The company is facing increased competition as new entrants shift towards pure electric vehicles, raising the proportion of pure electric models in their offerings from 49% to 74% [3]. - Sales of the i8 and i6 models have not met expectations, with i8 selling 5,749 units in October and i6 only 5,775 units in September [3][4]. Recall Impact - A fire incident involving the 2024 Li MEGA led to a recall of 11,411 vehicles, which significantly affected Q3 profit performance [3][4]. Management and Strategic Adjustments - Li Auto's founder, Li Xiang, emphasized the need to redefine product and technology strategies moving forward [2][12]. - The company is transitioning back to a more agile management style, moving away from the "professional manager model" to a more entrepreneurial approach [12][13]. - Li Auto plans to enhance its organizational efficiency and adapt to market changes by reverting to the OKR management model [13]. Research and Development Focus - Li Auto has maintained high R&D investment, with Q3 2025 R&D expenses reaching 3 billion RMB, and an expected total of 12 billion RMB for the year, with a significant portion allocated to AI technology [8][11]. - The company is focusing on developing its VLA large model for advanced autonomous driving capabilities, achieving a monthly usage rate of 91% in October [8]. Future Outlook - Li Auto aims to leverage its substantial cash reserves, which stood at 98.9 billion RMB, to navigate through the current challenges and invest in future growth [7][15]. - The company is committed to creating innovative products that integrate embodied intelligence, moving beyond traditional electric vehicle offerings [14][15].