Li Auto (LI) Posts Q3 Loss as Deliveries Drop 39% YoY

Core Insights - Li Auto Inc. is currently viewed as a promising investment in the EV charging sector, holding a consensus rating of Hold from analysts, with an average price target suggesting a potential upside of 26.2% from its current stock price [1] Financial Performance - In Q3 2025, Li Auto reported a non-GAAP diluted net loss per ADS of RMB 0.36 ($0.05), which was below analyst expectations of RMB 0.64 [1] - The company's total revenue for the quarter was RMB 27.4 billion ($3.8 billion), exceeding analyst forecasts by 3.28%, but reflecting a significant year-over-year decline of 36.2% due to reduced vehicle deliveries and a vehicle recall [1][2] - Li Auto experienced a net loss of RMB 624.4 million ($87.7 million) in Q3 2025, a stark contrast to a net income of RMB 2.8 billion in Q3 2024, attributed to a 37.4% decline in vehicle sales [2] - Total vehicle deliveries fell by 39.0% to 93,211 units compared to the same quarter last year [2] - Gross profit decreased by 51.6% year-over-year to RMB 4.5 billion ($627.8 million), resulting in a gross margin of 16.3%, down from 21.5% [2] Strategic Initiatives - Li Auto is actively investing in EV charging infrastructure, committing over RMB 6 billion to expand its supercharging network, with a goal of establishing more than 5,000 supercharging stations by the end of 2025 [3] - The new supercharging stations will utilize proprietary 5C fast-charging technology and aim to cover 90% of major highway routes and urban centers in China [3]