Core Viewpoint - Li Auto is experiencing significant challenges in its tenth year, transitioning back to a startup management model to address new market and technological challenges [1][6]. Financial Performance - In Q3 2025, Li Auto reported revenue of 27.4 billion yuan, a year-on-year decline of 36.2% and a quarter-on-quarter decline of 9.5% [2][3]. - Vehicle sales revenue was 25.9 billion yuan, down 37.4% year-on-year and 10.4% quarter-on-quarter [2]. - The total vehicle delivery in Q3 was 93,200 units, a decrease of 39.0% year-on-year, marking the first quarterly loss after 11 consecutive profitable quarters, with a net loss of 624 million yuan [3][4]. Challenges Faced - Li Auto is facing multiple challenges, including product cycle issues, supply chain constraints, and increased competition in the market [4][5]. - The company has reached a growth ceiling in its range-extended vehicle segment, compounded by the introduction of competing products at similar price points [1][4]. Recall and Safety Measures - Li Auto initiated a large-scale recall of 11,411 units of the 2024 MEGA model due to safety concerns, marking the first major recall in the company's history [4]. - The recall is expected to impact the delivery of the 2025 MEGA model as resources are redirected to address the recall [4]. Strategic Shift - The company plans to focus on "embodied intelligence" and has launched its first AI glasses product, marking a cross-industry technology expansion [1][10]. - Li Auto's CEO emphasized the importance of returning to a startup management model, prioritizing organizational structure, product development, and technology innovation [6][7]. Future Outlook - For Q4 2025, Li Auto expects vehicle deliveries to range from 100,000 to 110,000 units, a year-on-year decrease of 30.7% to 37.0%, with total revenue projected between 26.5 billion and 29.2 billion yuan, reflecting a decline of 34.2% to 40.1% [5]. - The company is investing in AI technology, with a 15% increase in R&D expenses in Q3 2025, focusing on new models and smart driving technology [9].