Core Insights - Li Auto delivered 30,731 new vehicles in July 2025, representing a 40% year-over-year decline [1] - The cumulative delivery volume of Li Auto reached 1,368,541 vehicles as of July 31, 2025 [1] Company Developments - Li Auto plans to enhance the user experience for existing vehicle owners by upgrading all Li AD Max owners to the VLA driver model [1] - Both older users of the 2022 Li L9 on the Orin X platform and new users on the updated Thor platform will receive the VLA upgrade [1] Infrastructure Expansion - As of July 31, 2025, Li Auto has established 535 retail centers across 153 cities [1] - The company operates 527 after-sales service and authorized body repair centers, covering 222 cities [1] - Li Auto has deployed 3,028 Li Supercharging stations with a total of 16,671 charging piles nationwide [1]

Core Viewpoint - Li Auto officially launched the new i8 model, targeting the mid-to-large luxury family vehicle market, with prices ranging from 321,800 to 369,800 yuan [1][2] Group 1: Product Launch and Features - The i8 features a design that continues the MEGA front face style and inherits the tail design from the L series SUVs [1] - The i8 is equipped with a standard 5C ternary lithium battery pack, achieving a maximum range of 720 km under CLTC conditions, with a power consumption of 13.4 kWh per 100 km [2] - The vehicle can recharge 500 km of range in just 10 minutes [2] Group 2: Market Position and Competition - The i8's main competitors include the AITO M9 electric version, Tesla Model X, and NIO ES8 [1] - Li Auto aims to provide an option for consumers who appreciate the MEGA but have budget constraints [1] Group 3: Sales and Delivery Expectations - Li Auto adjusted the release schedule for the i8 due to underperformance of the MEGA model, which was initially planned for 2024 [2] - The company has set a goal of achieving 2,500 supercharging stations by the time of the i8's launch, having already surpassed 3,000 stations as of July 28 [2] - Despite a 24% year-on-year decline in monthly delivery volume in June, analysts predict that the i8 could contribute over 5,000 units in stable monthly sales [3]

Core Viewpoint - Li Auto is accelerating its transition to the pure electric era with the launch of its first pure electric SUV, the Li Auto i8, which is set to begin deliveries on August 20, 2023 [3][4]. Group 1: Product Overview - The Li Auto i8 is defined as a family six-seat SUV, combining features of an off-road vehicle, luxury sedan, and MPV [4]. - The i8 is available in three versions: Pro priced at 321,800 yuan, Max at 349,800 yuan, and Ultra at 369,800 yuan, with various promotional offers for early buyers [5]. - The design of the i8 is inspired by yachts, aiming for lower drag coefficients and better cabin space utilization [7]. Group 2: Market Strategy - Li Auto aims to capture a larger share of the pure electric market, which is crucial for the company's next growth phase [4][8]. - The company has built 3,000 supercharging stations and 16,000 supercharging piles, claiming the highest coverage rate in the industry [7]. - The i8 is positioned as a key product to drive sales, with expectations to achieve a sales target of over 500,000 units in 2024 [9]. Group 3: Competitive Landscape - The i8 faces competition from established players like Tesla's Model Y and emerging models such as the Leado L90 and Hongmeng Zhixing's M8 [12]. - Li Auto's previous model, the MEGA, faced challenges but has seen a threefold increase in sales, indicating potential for the i8 [13]. - The company is focusing on brand strength and user experience to differentiate itself in a crowded market [13].

Investment Rating - The investment rating for the company is Neutral [4][10]. Core Insights - The first quarter performance met expectations, while the guidance for the second quarter is slightly below expectations. The company reported a total revenue increase of 1.1% quarter-on-quarter and a decrease of 41.4% year-on-year, with a gross margin of 19.8%, which is better than market expectations [2][3]. - The company expects second-quarter revenue to be between 32.5 billion and 33.8 billion RMB, representing a quarter-on-quarter increase of 25.5% to 30.5%, with vehicle sales projected at 123,000 to 128,000 units, a quarter-on-quarter increase of 32.4% to 37.8% [3][9]. - The average selling price per vehicle is expected to decline by 13,000 RMB quarter-on-quarter, indicating pricing pressure in the upcoming quarter due to the transition between old and new models and increased inventory reduction efforts [3][9]. Financial Overview - Revenue projections for the company are as follows: 123.85 billion RMB in 2023, 144.46 billion RMB in 2024, and 157.98 billion RMB in 2025, with year-on-year growth rates of 173.5%, 16.6%, and 9.4% respectively [8][14]. - Net profit is expected to be 11.70 billion RMB in 2023, decreasing to 8.03 billion RMB in 2024, and then slightly increasing to 8.56 billion RMB in 2025 [8][14]. - The company’s earnings per share (EPS) are projected to be 5.95 RMB in 2023, 4.03 RMB in 2024, and 4.29 RMB in 2025, reflecting a significant decline in 2023 followed by a modest recovery [8][14]. Market Performance - The company's stock has a 52-week high of 128.70 HKD and a low of 69.15 HKD, with a market capitalization of approximately 363.50 billion HKD [6][10]. - The average daily trading volume is 16.84 million shares, and the year-to-date change in stock price is 15.17% [6][10].

Core Insights - The article discusses the transformative impact of artificial intelligence (AI) on the automotive industry, particularly through the lens of Li Auto's VLA driver model, which represents a significant evolution in AI applications within the sector [1][3][10] Group 1: AI Development and Evolution - Li Auto categorizes AI tools into three levels: information tools, auxiliary tools, and production tools, emphasizing that the true explosion of AI will occur when it becomes a production tool [3][5] - The development of the VLA driver model follows a clear evolutionary trajectory, moving from basic rule-based systems to advanced models that can understand and interact with the physical world like humans [5][9] - The company views the VLA model as an evolutionary process rather than a sudden leap, highlighting the importance of foundational algorithms and end-to-end technology in its development [5][10] Group 2: Human-Centric AI and Safety - Li Auto emphasizes the importance of aligning AI behavior with human values through techniques like Reinforcement Learning from Human Feedback (RLHF), ensuring that the AI adheres to traffic rules and societal driving norms [7][9] - The company aims to create an AI that embodies human values, establishing ethical boundaries for its operation, which is crucial for user trust and safety [7][10] - Li Auto's approach to AI development reflects a commitment to enhancing safety standards, addressing the inherent contradictions in automated driving capabilities [7][9] Group 3: Strategic Vision and Market Position - Li Auto positions itself as a pioneer in the AI space, claiming to explore "unmanned areas" in both automotive and AI sectors, which have not been traversed by major competitors like DeepSeek or OpenAI [9][10] - The company is focused on building a robust technological foundation, leveraging its past experiences in the automotive field to drive innovation in AI [9][10] - Li Auto's strategic vision includes redefining the essence of smart vehicles, moving beyond mere parameter accumulation to a deeper understanding of productivity [10]