Benzinga·2026-01-09 10:00Core Viewpoint - Li Auto reported a net loss of RMB 625 million (approximately USD 89.286 million) in Q3 2025, marking the end of 11 consecutive profitable quarters, primarily due to a recall of 11,400 vehicles [1] Financial Performance - Vehicle sales revenue in Q3 2025 was RMB 25.9 billion (approximately USD 3.7 billion), a decline of 37.4% from RMB 41.3 billion (approximately USD 5.9 billion) in Q3 2024; total deliveries were 93,211 units, down 39.0% YoY [2] - Total revenue for Q3 2025 was RMB 27.4 billion (approximately USD 3.914 billion), down 36.2% from RMB 42.9 billion (approximately USD 6.129 billion) in Q3 2024, and down 9.5% QoQ from RMB 30.2 billion (approximately USD 4.314 billion) in Q2 2025 [3] - The projected vehicle deliveries for Q4 2025 are between 100,000 to 110,000 units, representing a YoY decrease of 37.0% to 30.7% [5] Competitive Landscape - Li Auto faces intensified competition in the new energy vehicle market, particularly from brands like AITO and Deepal in the EREV segment, and Tesla and NIO in the BEV segment, which have established significant advantages [6][7] - The company must accelerate its transition to BEVs and enhance its production capacity to remain competitive [8] Production Challenges - Despite strong market response to newly launched BEV models i6 and i8, supply chain challenges have limited their deliveries to only 18% of total deliveries in Q3 [9] - Li Auto is attempting to increase production capacity through a dual-supplier system but faces urgent supply chain stability issues [9] Strategic Expansion - Li Auto has begun diversifying into new business lines, launching divisions for "Space Robotics" and "Wearable Robotics," and introduced AI smart glasses priced at RMB 1,999 (approximately USD 285.57), though market response has been lukewarm [10][11] Consumer Engagement - Despite declining deliveries, Li Auto maintains high app user engagement, indicating a strong core consumer base that could support future recovery [12] Future Outlook - For Q4 2025, revenue is forecasted at RMB 26.5 billion (approximately USD 3.786 billion), reflecting a 40% YoY decline, with ongoing challenges expected in the near term [13][14]