Core Viewpoint - Li Auto Inc. reported a significant decline in vehicle deliveries and financial performance for the third quarter of 2025, reflecting challenges in the new energy vehicle market and operational difficulties. Operating Highlights - Total deliveries for Q3 2025 were 93,211 vehicles, a 39.0% year-over-year decrease [2][3] - The company had 542 retail stores in 157 cities and 3,420 supercharging stations in operation as of September 30, 2025 [3] Financial Highlights - Vehicle sales amounted to RMB 25.9 billion (US$ 3.6 billion) in Q3 2025, down 37.4% from RMB 41.3 billion in Q3 2024 and down 10.4% from RMB 28.9 billion in Q2 2025 [4][13] - Total revenues were RMB 27.4 billion (US$ 3.8 billion), a decrease of 36.2% year-over-year [4][13] - Gross profit was RMB 4.5 billion (US$ 627.8 million), down 51.6% from RMB 9.2 billion in Q3 2024 [4][13] - Net loss was RMB 624.4 million (US$ 87.7 million), compared to a net income of RMB 2.8 billion in Q3 2024 [4][24] Cost and Margin Analysis - Cost of sales was RMB 22.9 billion (US$ 3.2 billion), a decrease of 32.0% from RMB 33.6 billion in Q3 2024 [18] - Vehicle margin was 15.5% in Q3 2025, down from 20.9% in Q3 2024 [4][18] - Gross margin was 16.3%, compared to 21.5% in Q3 2024 [4][18] Operating Expenses - Operating expenses were RMB 5.6 billion (US$ 793.1 million), a decrease of 2.5% from RMB 5.8 billion in Q3 2024 [4][18] - Research and development expenses increased by 15.0% year-over-year to RMB 3.0 billion (US$ 417.8 million) [18] Cash Flow and Financial Position - Net cash used in operating activities was RMB 7.4 billion (US$ 1.0 billion) in Q3 2025, compared to RMB 11.0 billion net cash provided in Q3 2024 [7][24] - Free cash flow was negative RMB 8.9 billion (US$ 1.3 billion) in Q3 2025 [7][24] - Cash position was RMB 98.9 billion (US$ 13.9 billion) as of September 30, 2025 [24] Recent Developments - The company launched the Li i6, a new battery electric SUV, in September 2025 [9] - In October 2025, Li Auto opened its first overseas authorized retail store in Tashkent, Uzbekistan [10] - The Li i8 achieved the highest score in the China-Automobile Health Index assessment [11] Management Commentary - The CEO highlighted strong momentum in the BEV portfolio and confidence in achieving long-term strategic objectives despite market challenges [12] - The CFO noted operational resilience with a gross margin of 20.4% when excluding recall costs [12]

Core Insights - Li Auto Inc. delivered 31,767 vehicles in October 2025, bringing cumulative deliveries to 1,462,788 as of October 31, 2025 [1] - The Li i6 model has received over 70,000 orders since its launch, prompting the company to enhance delivery capabilities [2] - Li Auto is expanding globally, having opened its first overseas retail store in Uzbekistan and planning additional stores in Kazakhstan [2] Company Operations - As of October 31, 2025, Li Auto operates 551 retail stores across 157 cities, 554 servicing centers, and authorized body and paint shops in 225 cities [3] - The company has established 3,508 supercharging stations with 19,417 charging stalls in China [3] Product and Technology - Li Auto is a leader in China's new energy vehicle market, focusing on premium smart electric vehicles and extended-range electric vehicles [4] - The company aims to create a mobile home experience through innovative products and technology, with a current lineup that includes multiple models of extended-range electric SUVs and battery electric SUVs [4]

Company Performance - Li Auto delivered 33,951 vehicles in September 2025, totaling 93,211 deliveries for the third quarter [1] - Cumulative deliveries reached 1,431,021 as of September 30, 2025 [1] Market Position - Li Auto maintains its leading position in the RMB200,000 and above SUV market in China, ranking first in cumulative sales from January to August 2025 [2] Product Launch - The Company officially launched the Li i6, a five-seat battery electric SUV, on September 26, 2025, with deliveries commencing the following day [2] Infrastructure Development - As of September 30, 2025, Li Auto operated 542 retail stores in 157 cities and 546 servicing centers across 225 cities [3] - The Company has 3,420 supercharging stations with 18,897 charging stalls in operation in China [3] Company Overview - Li Auto is a leader in China's new energy vehicle market, focusing on premium smart electric vehicles and extended-range electric vehicles [4] - The Company aims to create safe, convenient, and comfortable products and services through innovation in technology and business models [4] - Li Auto's current model lineup includes a high-tech flagship family MPV, four Li L series extended-range electric SUVs, and two Li i series battery electric SUVs [4]

Economic Growth - The U.S. economy grew at a 3.8% annual rate in the second quarter, marking the fastest pace since Q3 2023 and above the long-term trend [1] - This growth represents a sharp rebound from the first quarter's 0.5% contraction, attributed to tariff fears that curbed business activity [1] Labor Market - Jobless claims came in far below expectations, indicating that layoffs remain limited and the labor market is resilient despite Federal Reserve concerns [3] Corporate Earnings - Accenture plc reported fourth-quarter revenue of $17.6 billion, exceeding expectations, with bookings rising 3% to $21.3 billion [4] - Micron Technology, Inc. reported fourth-quarter revenue of $11.32 billion, beating analyst estimates of $11.22 billion [4] - BlackBerry Limited reported second-quarter earnings of $0.04 per share, surpassing the analyst consensus estimate of $0.01 [5] - Costco Wholesale Corporation reported fourth-quarter revenue of $86.16 billion, beating analyst estimates of $86.12 billion [5] Technology Developments - Microsoft Corporation suspended specific services used by an Israeli military unit following a media investigation into mass surveillance [6] - Meta Platforms is broadening access to its Llama AI models for key U.S. allies to enhance national security and operational efficiency [6] - Boeing Co. announced a strategic partnership with Palantir Technologies to integrate AI solutions across its defense and space unit [8] - Alibaba Group is deepening its AI ambitions by integrating Nvidia's suite of "physical AI" development tools into its cloud platform [8] Financial Agreements - PayPal Holdings, Inc. and Blue Owl Capital Inc. announced a two-year agreement for Blue Owl to purchase approximately $7 billion of buy now, pay later receivables originated by PayPal in the U.S. [9] AI Infrastructure - Cipher Mining Inc. secured a 10-year colocation agreement valued at roughly $3 billion, positioning itself as a major player in high-performance computing data centers [11] - Comcast Corporation announced an expansion of artificial intelligence in its broadband infrastructure to create a smarter network [12] Autonomous Vehicles - Lucid Group delivered the first Uber-exclusive robotaxi engineering vehicle to Nuro for integration [14] - Pony AI Inc. received a permit to begin autonomous driving trials in Dubai, moving closer to a commercial launch [15] - Alphabet's Waymo introduced a fleet of Robotaxis targeting universities and businesses as the self-driving race heats up [16]

Company Overview - Li Auto launched the Li i6, a five-seat battery electric SUV, priced at 249,800 Chinese yuan (~$35,020), with deliveries starting on September 27, 2025, indicating the company's strategy to expand its electric vehicle lineup [1] - The company aims to compete in China's pure battery electric vehicle market, which is currently dominated by competitors like BYD and Tesla [1] Financial Performance - Li Auto's revenue for Q2 2025 fell 4.5% year-over-year to $4.2 billion, missing the consensus estimate of $4.4 billion, while adjusted EPS was $0.19, below expectations of $0.24 [2] - Vehicle sales decreased by 4.7% to $4.0 billion, despite a 2.3% increase in deliveries to 111,074 units [2] Future Projections - For Q3 2025, Li Auto projects revenue between $3.5 billion and $3.7 billion, representing a nearly 40% year-over-year decline and significantly below the $6.0 billion analyst consensus [3] - The company forecasts deliveries of 90,000-95,000 vehicles, a decline of 38%-41% from the previous year [3] Market Context - Deutsche Bank analysts predict Tesla will deliver approximately 72,000 vehicles in China in September, a 27% increase from August, while BYD is expected to deliver over 380,000 units, reflecting a 2% monthly rise but a 9% year-over-year drop [3][4] - Li Auto is projected to deliver around 35,000 vehicles, indicating a 23% monthly growth but a 35% annual decline [4]

Company Overview - Li Auto Inc. is a leader in China's new energy vehicle market, focusing on designing, developing, manufacturing, and selling premium smart electric vehicles [2] - The company's mission is to create a mobile home and happiness for families through innovative products and services [2] - Li Auto has successfully commercialized extended-range electric vehicles in China while also developing battery electric vehicle platforms [2] Product Launch - Li Auto officially launched the Li i6, a five-seat battery electric SUV, priced at RMB249,800 for its standard configuration [1] - Deliveries of the Li i6 are set to commence on September 27, 2025 [1] Current Product Lineup - The current model lineup includes a high-tech flagship family MPV, four Li L series extended-range electric SUVs, and two Li i series battery electric SUVs [2] - The company plans to expand its product lineup to target a broader user base [2]

Core Insights - Li Auto Inc. delivered 28,529 vehicles in August 2025, bringing cumulative deliveries to 1,397,070 as of August 31, 2025 [1][2] Group 1: Company Performance - The company is set to launch the Li i6, a battery electric SUV, priced between approximately RMB250,000 and RMB300,000 in September [2] - As of August 31, 2025, Li Auto operated 543 retail stores in 156 cities, 536 servicing centers, and authorized body and paint shops in 222 cities [3] - The company has 3,190 supercharging stations with 17,597 charging stalls in operation across China [3] Group 2: Company Overview - Li Auto is a leader in China's new energy vehicle market, focusing on designing, developing, manufacturing, and selling premium smart electric vehicles [4] - The company aims to create a mobile home and happiness through innovations in product, technology, and business model [4] - Li Auto has successfully commercialized extended-range electric vehicles in China while also developing battery electric vehicle platforms [4]

Financial Data and Key Metrics Changes - Total revenue for the second quarter was RMB30.2 billion, down 4.5% year over year but up 16.7% quarter over quarter [25] - Vehicle sales contributed RMB28.9 billion, down 4.7% year over year and up 17% quarter over quarter [25] - Gross profit was RMB6.1 billion, down 1.8% year over year and up 14.1% quarter over quarter [26] - Net income was RMB1.1 billion, down 0.4% year over year and up 69.6% quarter over quarter [29] - Operating expenses decreased by 8.2% year over year and increased by 3.8% quarter over quarter [27] Business Line Data and Key Metrics Changes - Li Mega Home achieved approximately 3,000 units sold monthly, becoming the best-selling NPV priced above RMB500,000 since May 2025 [7] - The refreshed Li L Series experienced sales fluctuations due to adjustments in sales and service systems [8] - Li i8 received a test drive satisfaction rate of over 97% and is expected to exceed 8,000 cumulative deliveries by September [11] Market Data and Key Metrics Changes - Li Auto captured a 13.4% market share in the RMB200,000 and above NEV market in China [6] - The company maintained a top three sales position in the RMB200,000 and above NEV market despite challenges [9] Company Strategy and Development Direction - The company plans to enhance sales and delivery capabilities and build an end-to-end marketing system [9] - Li Auto aims to leverage technological innovation to lead industry transformation and strengthen its brand [22] - The company is focusing on expanding its product lineup with the upcoming launch of Li i6 [11] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming challenges and emphasized the importance of creating value for users [9] - The company expects to deliver between 90,000 to 95,000 vehicles in 2025, with quarterly revenues between RMB24.8 billion and RMB26.2 billion [30] - Management highlighted the importance of AI investments, expecting to exceed RMB6 billion this year [15] Other Important Information - Li Auto operates over 3,100 charging stations with more than 17,000 charging stalls, aiming to reach 4,000 stations by the end of the year [13] - The company is committed to ongoing investments in R&D to solidify its leading position in intelligence and technology [14] Q&A Session Summary Question: Sales volume and strategy for L Series - Management plans to solidify market position through intelligence and enhance product competitiveness with major upgrades in assisted driving [34][35] Question: Update on self-developed chips - The in-house design chip is undergoing vehicle testing and is expected to be deployed on flagship models next year [44] Question: Progress on sales system adjustment - A major reorganization of the sales team has been completed, focusing on enhancing frontline expert support and improving sales conversion [51][55] Question: Future strategy for product and SKU - The company will reduce the number of SKUs and focus on maximizing competitiveness and iterating faster on products and technology [60] Question: Gross margin outlook for Q3 - The company expects to maintain gross margin at about 19% for the third quarter [62] Question: Product positioning and marketing plan for I6 - The I6 is positioned as a competitive product in the large five-seater SUV market, with a user-centric marketing approach [65] Question: Overseas strategy - The company is expanding its global strategy, focusing on markets in the Middle East, Central Asia, and Europe [68][70] Question: Operating cash flow situation - Negative operating cash flow in Q2 was due to payment terms adjustments, with expectations for improvement in Q4 [73] Question: Autonomous driving technology development - The company is confident in maintaining progress in VLA development and adapting to regulatory changes [79][80]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was RMB30.2 billion, down 4.5% year over year but up 16.7% quarter over quarter [24] - Vehicle sales contributed RMB28.9 billion, down 4.7% year over year and up 17% quarter over quarter [24] - Gross profit was RMB6.1 billion, down 1.8% year over year and up 14.1% quarter over quarter [25] - Net income was RMB1.1 billion, down 0.4% year over year and up 69.6% quarter over quarter [29] - Operating expenses decreased by 8.2% year over year and increased by 3.8% quarter over quarter [26] Business Line Data and Key Metrics Changes - Li Mega Home achieved approximately 3,000 units sold monthly, becoming the best-selling NPV priced above RMB500,000 since May 2025 [7] - The refreshed Li L Series experienced sales fluctuations due to adjustments in sales and service systems [7] - Li i8 received a test drive satisfaction rate of over 97% and is expected to exceed 8,000 cumulative deliveries by September [10] Market Data and Key Metrics Changes - Li Auto captured a 13.4% market share in the RMB200,000 and above NEV market in China [6] - The company maintained a top three sales position in the RMB200,000 and above NEV market despite challenges [8] Company Strategy and Development Direction - The company plans to enhance sales and delivery capabilities and build an end-to-end marketing system [8] - Li Auto aims to leverage technological innovation to lead industry transformation and strengthen its brand [21] - The company is focusing on creating value for users and responding effectively to market dynamics [8] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming challenges and emphasized the importance of intelligence in driving user purchasing decisions [14] - The company expects AI investments to exceed RMB6 billion this year, focusing on infrastructure and technology development [14] - Management anticipates cumulative deliveries of Li i6 to begin in September, expanding the product lineup [10] Other Important Information - Li Auto operates over 3,100 charging stations with more than 17,000 charging stalls, aiming to reach 4,000 stations by the end of the year [12] - The company has launched China's first pass-through supercharging station, enhancing the charging experience [13] - Li Auto's proprietary VLA large model driver is set to be deployed on all V80 Max models via OTA update by mid-September [15] Q&A Session Summary Question: Sales volume and strategy for L Series - Management plans to solidify market position through intelligence and enhance product competitiveness with major upgrades in assisted driving [34][35] Question: Update on self-developed chips - The chip is undergoing vehicle testing and is expected to be deployed on flagship models next year, providing significant performance improvements [44] Question: Progress on sales system adjustments - A major reorganization of the sales team has been completed, focusing on enhancing frontline expert income and efficiency [51][52] Question: Future strategy for product and SKU - The company will reduce the number of SKUs and increase the pace of product and technology iteration to maintain competitiveness [60] Question: Gross margin outlook for Q3 - The company expects to maintain gross margin at about 19% for Q3, consistent with previous quarters [62] Question: Product positioning and overseas strategy - The i6 is positioned as a competitive product in the large five-seater SUV market, with plans for global market expansion starting in 2025 [66][70] Question: Operating cash flow situation - Negative operating cash flow in Q2 was due to payment terms adjustments, with expectations for improvement in Q4 [75] Question: Autonomous driving team changes and regulatory impact - Recent departures in the autonomous driving team are common, and the company is confident in its current structure and talent pipeline [78][81]

Core Insights - NIO Inc. reported a total of 24,925 vehicle deliveries in June, marking a year-over-year growth of 17.5%. For Q2, the company delivered 72,056 vehicles, which is a 25.6% increase compared to the same quarter last year and within the company's guidance range [1][9]. Delivery Performance - In Q2, NIO's namesake brand sold 47,132 cars, reflecting an approximate decline of 18% from the same quarter in 2024. The ONVO brand delivered 17,081 units, while Firefly delivered 7,843 units [2]. - The ONVO and Firefly brands have diversified NIO's product portfolio, contributing to sales momentum, but this growth appears to be at the expense of the core NIO brand [3]. Year-to-Date Performance - In the first half of 2025, NIO sold 114,150 vehicles, representing an increase of over 30% from the previous year. However, this growth is insufficient to meet the company's ambitious target of doubling sales to 330,000 vehicles in 2025 [4][5]. Competitive Landscape - Li Auto delivered 36,279 units in June and 111,074 vehicles in Q2 2025, with a modest growth rate of 2.3%. XPeng Inc. delivered 34,611 smart EVs in June, achieving a remarkable 224% year-over-year increase and setting a new quarterly record with 103,181 cars sold in Q2 [6][7]. Stock Performance - NIO's shares have declined approximately 19% year-to-date, compared to an 8% decline in the broader industry [8]. Valuation Metrics - NIO currently trades at a forward price-to-sales ratio of 0.45 and holds a Value Score of D, indicating potential concerns regarding its valuation [10].