Cai Jing Wang·2025-11-27 23:11Core Insights - Li Auto reported a significant decline in Q3 2025 revenue, with a year-on-year decrease of 36.2% to 27.4 billion RMB, primarily due to a drop in vehicle sales and a net loss of 6.244 billion RMB, marking a shift from profitability to loss for the first time in 11 quarters [1][4][5] Financial Performance - Q3 2025 revenue was 27.4 billion RMB, down 36.2% year-on-year and 9.5% quarter-on-quarter [1][3] - Vehicle sales revenue reached 25.9 billion RMB, reflecting a 37.4% year-on-year decline and a 10.4% quarter-on-quarter decline [1] - The net loss for Q3 2025 was 6.244 billion RMB, compared to a profit of 2.8 billion RMB in Q3 2024 and 1.1 billion RMB in Q2 2025 [1][5] - R&D expenses for Q3 were 3 billion RMB, with an expected total R&D investment of 12 billion RMB for the year, including over 6 billion RMB in AI [1] Vehicle Delivery and Sales - Total vehicle deliveries in Q3 2025 were 93,211 units, a 39.0% decrease year-on-year [4][5] - The company anticipates Q4 2025 vehicle deliveries to be between 100,000 and 110,000 units, representing a year-on-year decrease of 37.0% to 30.7% [5] Strategic Adjustments - Li Auto plans to revert to a startup management model starting Q4 2025 to better address new challenges and technologies [5] - The company is focusing on expanding its pure electric vehicle lineup, with two new electric SUVs, Li i8 and Li i6, achieving over 100,000 total orders [9] Impact of Recall - A recall of the MEGA model incurred a one-time cost of approximately 1.1 billion RMB, significantly impacting Q3 financial results [6][8] - The gross margin for Q3 was 16.3%, down from 21.5% in Q3 2024, but would have been 20.4% without the recall costs [6] Market Trends - The market for range-extended vehicles is facing challenges, with a decline in wholesale and retail sales, and a decreasing market share for range-extended vehicles from 51% to 26% [11]