Li Auto Reports Significant Q4 Earnings Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Source: Benzinga
Li Auto Inc's stock fell 5.23% as it crossed below the 5-day SMA amid broader market weakness, with the Nasdaq-100 down 0.94% and the S&P 500 down 1.04%.
The company's Q4 2025 earnings report revealed a 35% year-over-year decline in revenue to 28.8 billion yuan ($4.11 billion), significantly missing analyst expectations of 42.8 billion yuan. This decline was driven by reduced deliveries and weak market demand, leading to a gross margin contraction from 19.7% to 16.8%. Additionally, Li Auto reported an adjusted operating loss of 188.4 million yuan ($26.9 million), a stark contrast to a profit of 4.2 billion yuan in the previous year, indicating severe profitability challenges. The company anticipates Q1 2026 revenue to decline further, projecting between 20.4 billion and 21.6 billion yuan, reflecting ongoing market difficulties.
These results highlight the significant pressures Li Auto faces in a competitive electric vehicle market, raising concerns about its future performance and market share. Investors will need to monitor how the company adapts to these challenges and its strategies for recovery.
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Analyst Views on LI
Wall Street analysts forecast LI stock price to rise
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 13.580
Low
15.00
Averages
20.51
High
32.00
Current: 13.580
Low
15.00
Averages
20.51
High
32.00
About LI
Li Auto Inc is a holding company primarily engaged in the design, development, manufacturing, and sales of smart electric vehicles. The Company’s main products include the Li L9, Li L8, Li L7, Li L6, and Li MEGA, encompassing six-seat sport utility vehicles (SUVs), five-seat SUVs, and multi-purpose vehicles (MPVs). The Company is also engaged in research and development activities relating to intelligent vehicle technologies, the design, development and manufacturing of various components and systems for new energy vehicles, and the provision of value-added services such as charging, vehicle maintenance and repair. The Company mainly conducts its businesses within domestic market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- AEVEX Shareholder Sell-off: AEVEX shares hit a record low of $21.33 as major shareholder Madison Dearborn Partners sold 2.27 million shares worth about $59.1 million, leading to diminished market confidence, while the founder also reduced his stake, raising concerns about dilution.
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- Market Sentiment Shift: Despite EHang's retail sentiment improving to 'extremely bullish' on Stocktwits, overall market confidence in EHang, AEVEX, and Li Auto remains low, reflecting skepticism about the profitability and execution capabilities of companies tied to advanced aviation, drones, and electric vehicles.
See More
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- Market Comparison: Compared to the current RSI of 46.3 for the S&P 500 ETF (SPY), LI's oversold status may attract bullish investors looking for entry points to capitalize on a potential rebound.
- Price Fluctuation: Over the past 52 weeks, LI's stock has seen a low of $13.96 and a high of $32.025, with the latest trade at $14.11, indicating that the stock is hovering near its low, potentially drawing interest from value investors.
- Investor Sentiment: While the current oversold signal may suggest short-term rebound opportunities, investors should remain cautious and consider the overall market environment and the company's fundamentals to avoid potential risks.
See More
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- Significant Sales Growth: Tesla delivered 85,982 China-made new energy vehicles in May, marking a 39.4% year-on-year increase, indicating a strong recovery momentum in the Chinese market that is likely to enhance its market share further.
- Market Recovery Signs: According to the China Passenger Car Association, total EV sales in China reached 1.36 million units in May, a 12% year-on-year growth, reflecting an initial recovery in the domestic EV market, with Tesla's growth mirroring this trend.
- Competitor Performance: BYD achieved 376,990 deliveries in May, ending an eight-month streak of declining sales, highlighting intensifying market competition that necessitates Tesla's continuous innovation to maintain its leading position.
- FSD Technology Progress: Tesla announced the rollout of its FSD (Supervised) system in China in May, despite facing legal challenges, this technological advancement could attract more consumers and enhance the brand's image and competitive edge in the market.
See More
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- Delivery Decline: Li Auto delivered 33,350 vehicles in May 2026, representing an 18.4% year-over-year decline from 40,856 vehicles, and slightly below April's 34,085 deliveries, indicating a weakening market demand.
- Cumulative Delivery Figures: As of May 31, 2026, Li Auto's cumulative deliveries reached 1,702,792 vehicles; however, since March, monthly deliveries of the Li i6 have consistently exceeded 20,000 units, suggesting that this model retains market appeal despite overall declines.
- New Model Launch: In May, Li Auto launched the all-new Li L9 and commenced deliveries, initiating a fresh product update cycle for the Li L series, and within just two weeks, it received over 10,000 orders, highlighting the new model's market potential.
- Market Outlook: Li Auto expects Q2 2026 deliveries to range between 95,000 and 100,000 vehicles, targeting over 20% market share in the RMB 500,000+ NEV SUV segment, reflecting the company's confidence in future growth prospects.
See More
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- Delivery Growth: In May 2026, Li Auto delivered 33,350 vehicles, bringing its cumulative deliveries to 1,702,792, demonstrating strong performance in China's new energy vehicle market and solidifying its leadership position.
- New Model Launch: The company launched the all-new Li L9 in May, receiving over 10,000 orders within two weeks, marking the beginning of a fresh product update cycle for the Li L series, which is expected to drive future sales growth.
- Technology Event Planned: Li Auto is set to host a dedicated technology event in June to showcase its capabilities in in-cabin interaction, assisted driving, and in-house chips, aiming to enhance brand image and attract more consumer interest.
- Charging Infrastructure Expansion: As of May 31, Li Auto operated 4,088 supercharging stations with 22,563 charging stalls in China, significantly improving charging convenience for users and enhancing the brand's competitive edge in the market.
See More
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- Boston Scientific Stock Decline: Boston Scientific shares fell to a 52-week low of $48.13, experiencing a 16% weekly drop due to weak expectations for its Watchman heart device business, with management indicating that U.S. revenue may remain weak for the next two quarters, prompting analysts to lower price targets.
- Li Auto's Profitability Pressure: Li Auto reported weaker profits in its Q1 earnings, forecasting Q2 deliveries between 95,000 and 100,000 vehicles, reflecting soft demand and intense competition in China's EV market, leading Barclays to cut its price target from $18 to $14, implying nearly a 7% downside.
- Rollins Valuation Reset: Rollins reached a new low of $46.85 despite solid operating performance, as investors focused on valuation concerns, with Bernstein downgrading the stock and lowering its price target from $70 to $52, citing the potential negative impact of CFO Ken Krause's departure on profitability.
- Market Sentiment Shift: The stocks of Boston Scientific and Rollins have declined over 49% and 20% respectively this year, while Li Auto has shed over 11%, indicating a shift in investor confidence away from premium-priced growth stocks, with market sentiment changing from 'extremely bullish' to 'bullish'.
See More
