Li Auto announces Q2 EPS of 19 cents, down from 20 cents a year ago.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 28 2025
0mins
Should l Buy LI?
Q2 Financial Performance: Li Auto reported Q2 revenue of $4.22 billion, a decrease from $4.36 billion the previous year, with total vehicle deliveries reaching 111,074, marking a 2.3% increase year-over-year.
Market Position: The company has solidified its status as China's leading domestic automotive brand in the RMB200,000 and above NEV market, driven by user-centric innovations.
Product Launches: In July, Li Auto launched the Li i8, a six-seat battery electric SUV, along with new technology initiatives, enhancing their product offerings and user experience.
Future Plans: Li Auto announced a brand upgrade aimed at providing high-quality spaces for diverse consumers and plans to launch the Li i6 in September to further strengthen its position in the premium BEV market.
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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: 17.100
Low
15.00
Averages
20.51
High
32.00
Current: 17.100
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.
RWC Asset Advisors Fully Exits Li Auto Stake
- Complete Liquidation: RWC Asset Advisors fully exited its stake in Li Auto by selling 1,638,544 shares in Q4 2025, with an estimated transaction value of approximately $33 million, indicating a significant loss of confidence in the stock.
- Asset Allocation Shift: Prior to the liquidation, Li Auto represented 6.8% of RWC's assets under management, with a position value of $41.5 million in the previous 13F filing, highlighting a major strategic shift in investment focus.
- Declining Performance: Li Auto's recent earnings report revealed a 35% year-over-year revenue decline and a 31% drop in vehicle deliveries, indicating severe challenges in the highly competitive Chinese EV market that may shake investor confidence.
- Poor Market Performance: As of March 19, 2026, Li Auto shares were priced at $17.10, down 38% over the past year and underperforming the S&P 500 by 56 percentage points, reflecting its ongoing struggles in the market.
See More
RWC Asset Advisors Fully Exits Li Auto Stake
- Complete Exit: RWC Asset Advisors sold 1,638,544 shares of Li Auto in Q4 2025, with an estimated transaction value of approximately $33 million, marking a full exit from a position that previously represented 6.8% of the fund's assets, indicating a significant loss of confidence in the stock.
- Significant Performance Decline: Li Auto's recent earnings report revealed a 35% year-over-year revenue decline and a 31% drop in vehicle deliveries, highlighting the company's struggles amid intense domestic price competition and sluggish consumer demand in the premium segment.
- Deteriorating Market Conditions: The Chinese EV sector is facing severe headwinds, including heightened price competition and persistent uncertainty surrounding U.S.-China trade relations, suggesting that RWC's decision may reflect a strategic shift towards commodity investments and a loss of conviction in Li Auto's future prospects.
- Signal to Investors: RWC's complete liquidation of its position may attract attention from other investors, particularly as Li Auto's stock continues to lag; thus, investors considering holding or buying the stock should carefully assess this institutional vote of no confidence.
See More
Ford's Electric Vehicle Strategy Faces Challenges Amid Costly Adjustments
- Strategic Adjustment: Ford incurred approximately $19.5 billion in special charges during Q4 due to adjustments in its electric vehicle strategy, resulting in a net loss of $11.1 billion, highlighting the challenges it faces in the EV market.
- EREV Replacement Plan: The company plans to replace the current all-electric F-150 Lightning with an extended-range electric vehicle (EREV), a move that may be seen as a costly detour on the path to mainstream EV adoption, potentially undermining investor confidence.
- Cost-Benefit Analysis: According to McKinsey, the EREV design can reduce powertrain production costs by about $6,000 compared to full EVs, offering a lighter and lower-cost alternative, although it also increases maintenance complexity risks.
- Future Outlook: Ford's next-generation Universal EV Platform is expected to debut in 2027, and while the current EREV option provides a short-term solution for the F-150 Lightning, the company urgently needs to achieve scale and cost reductions to compete effectively in the EV market.
See More
Ford's Strategic Shift to EREV for Lightning Truck
- Strategic Context: Ford's decision to convert the all-electric F-150 Lightning into an EREV is primarily driven by short-term necessity rather than a significant strategic shift, resulting in approximately $19.5 billion in special charges during Q4, leading to a net loss of $11.1 billion, highlighting the high costs of its EV strategy adjustments.
- Market Potential of EREVs: While EREVs are gaining traction in North America and Europe, particularly influenced by domestic brands like Li Auto in China, Ford's shift may provide a lower-cost alternative, especially with significant improvements in battery costs and range.
- Cost-Benefit Analysis: According to McKinsey, the smaller batteries in EREVs can save about $6,000 in powertrain production costs, offering Ford greater flexibility in electric vehicle platform design, although it also faces challenges related to maintenance complexity and short-term benefits.
- Future Outlook: Ford is not planning to completely replace its small full EV lineup with EREVs but aims to leverage EREVs to revitalize the F-150 Lightning until the launch of its Universal EV Platform in 2027, addressing current market challenges and reducing costs.
See More
Rivian Unveils Full Trims and Pricing for R2 Electric SUV
- Analyst Upgrade Signals Confidence: TD Cowen analyst Itay Michaeli upgraded Rivian to Buy from Hold and raised the price target from $17 to $20, projecting U.S. demand for the R2 could reach between 212,000 and 335,000 units, significantly exceeding prior estimates and reflecting strong confidence in the model's potential.
- R2 Model Launch: Rivian announced that deliveries of the R2 electric SUV will begin in spring 2026, with the Performance Launch Package starting at $57,990, designed to deliver signature capabilities at a lower price point, featuring up to 656 horsepower, a 0-60 mph acceleration time of 3.6 seconds, and an estimated range of 345 miles.
- Multiple Trims for Broader Market: The R2 lineup will include three main trims, with the Performance version featuring dual-motor AWD producing 656 horsepower and an EPA-estimated range of 330 miles, while the Premium trim starts at $53,990, and the Standard trim is expected in 2027 starting at $48,490, targeting a wider consumer base.
- Technology and Charging Updates: The R2 includes a native NACS charge port for access to Tesla's Supercharger network, featuring the latest software-defined architecture with 11 HDR cameras and an AI-enabled computing platform, enhancing driver assistance features and overall user experience.
See More
Li Auto Reports Significant Q4 Earnings Decline
- Revenue and Delivery Decline: Li Auto's Q4 2025 revenue fell 35% year-over-year to 28.8 billion yuan ($4.11 billion), missing the analyst consensus of 42.8 billion yuan, reflecting dual pressures from reduced deliveries and weak market demand.
- Margin Compression: Due to recall costs, vehicle gross margin contracted from 19.7% to 16.8%, with an adjusted operating loss of 188.4 million yuan ($26.9 million) contrasting sharply with a profit of 4.2 billion yuan in the prior year, indicating a significant deterioration in profitability.
- Cash Flow Situation: The company reported free cash flow of 2.5 billion yuan ($352.9 million) in Q4, a substantial drop from 6.1 billion yuan a year earlier, and a negative 8.9 billion yuan in Q3, highlighting challenges in cash management and operational efficiency.
- Future Outlook: Li Auto expects Q1 2026 revenue between 20.4 billion and 21.6 billion yuan, representing a year-over-year decline of 21.3% to 16.7%, with vehicle deliveries projected at 85,000 to 90,000 units, indicating a challenging market environment in the coming months.
See More
RWC Asset Advisors Fully Exits Li Auto Stake
- Complete Liquidation: RWC Asset Advisors fully exited its stake in Li Auto by selling 1,638,544 shares in Q4 2025, with an estimated transaction value of approximately $33 million, indicating a significant loss of confidence in the stock.
- Asset Allocation Shift: Prior to the liquidation, Li Auto represented 6.8% of RWC's assets under management, with a position value of $41.5 million in the previous 13F filing, highlighting a major strategic shift in investment focus.
- Declining Performance: Li Auto's recent earnings report revealed a 35% year-over-year revenue decline and a 31% drop in vehicle deliveries, indicating severe challenges in the highly competitive Chinese EV market that may shake investor confidence.
- Poor Market Performance: As of March 19, 2026, Li Auto shares were priced at $17.10, down 38% over the past year and underperforming the S&P 500 by 56 percentage points, reflecting its ongoing struggles in the market.
See More
RWC Asset Advisors Fully Exits Li Auto Stake
- Complete Exit: RWC Asset Advisors sold 1,638,544 shares of Li Auto in Q4 2025, with an estimated transaction value of approximately $33 million, marking a full exit from a position that previously represented 6.8% of the fund's assets, indicating a significant loss of confidence in the stock.
- Significant Performance Decline: Li Auto's recent earnings report revealed a 35% year-over-year revenue decline and a 31% drop in vehicle deliveries, highlighting the company's struggles amid intense domestic price competition and sluggish consumer demand in the premium segment.
- Deteriorating Market Conditions: The Chinese EV sector is facing severe headwinds, including heightened price competition and persistent uncertainty surrounding U.S.-China trade relations, suggesting that RWC's decision may reflect a strategic shift towards commodity investments and a loss of conviction in Li Auto's future prospects.
- Signal to Investors: RWC's complete liquidation of its position may attract attention from other investors, particularly as Li Auto's stock continues to lag; thus, investors considering holding or buying the stock should carefully assess this institutional vote of no confidence.
See More
Ford's Electric Vehicle Strategy Faces Challenges Amid Costly Adjustments
- Strategic Adjustment: Ford incurred approximately $19.5 billion in special charges during Q4 due to adjustments in its electric vehicle strategy, resulting in a net loss of $11.1 billion, highlighting the challenges it faces in the EV market.
- EREV Replacement Plan: The company plans to replace the current all-electric F-150 Lightning with an extended-range electric vehicle (EREV), a move that may be seen as a costly detour on the path to mainstream EV adoption, potentially undermining investor confidence.
- Cost-Benefit Analysis: According to McKinsey, the EREV design can reduce powertrain production costs by about $6,000 compared to full EVs, offering a lighter and lower-cost alternative, although it also increases maintenance complexity risks.
- Future Outlook: Ford's next-generation Universal EV Platform is expected to debut in 2027, and while the current EREV option provides a short-term solution for the F-150 Lightning, the company urgently needs to achieve scale and cost reductions to compete effectively in the EV market.
See More
Ford's Strategic Shift to EREV for Lightning Truck
- Strategic Context: Ford's decision to convert the all-electric F-150 Lightning into an EREV is primarily driven by short-term necessity rather than a significant strategic shift, resulting in approximately $19.5 billion in special charges during Q4, leading to a net loss of $11.1 billion, highlighting the high costs of its EV strategy adjustments.
- Market Potential of EREVs: While EREVs are gaining traction in North America and Europe, particularly influenced by domestic brands like Li Auto in China, Ford's shift may provide a lower-cost alternative, especially with significant improvements in battery costs and range.
- Cost-Benefit Analysis: According to McKinsey, the smaller batteries in EREVs can save about $6,000 in powertrain production costs, offering Ford greater flexibility in electric vehicle platform design, although it also faces challenges related to maintenance complexity and short-term benefits.
- Future Outlook: Ford is not planning to completely replace its small full EV lineup with EREVs but aims to leverage EREVs to revitalize the F-150 Lightning until the launch of its Universal EV Platform in 2027, addressing current market challenges and reducing costs.
See More
Rivian Unveils Full Trims and Pricing for R2 Electric SUV
- Analyst Upgrade Signals Confidence: TD Cowen analyst Itay Michaeli upgraded Rivian to Buy from Hold and raised the price target from $17 to $20, projecting U.S. demand for the R2 could reach between 212,000 and 335,000 units, significantly exceeding prior estimates and reflecting strong confidence in the model's potential.
- R2 Model Launch: Rivian announced that deliveries of the R2 electric SUV will begin in spring 2026, with the Performance Launch Package starting at $57,990, designed to deliver signature capabilities at a lower price point, featuring up to 656 horsepower, a 0-60 mph acceleration time of 3.6 seconds, and an estimated range of 345 miles.
- Multiple Trims for Broader Market: The R2 lineup will include three main trims, with the Performance version featuring dual-motor AWD producing 656 horsepower and an EPA-estimated range of 330 miles, while the Premium trim starts at $53,990, and the Standard trim is expected in 2027 starting at $48,490, targeting a wider consumer base.
- Technology and Charging Updates: The R2 includes a native NACS charge port for access to Tesla's Supercharger network, featuring the latest software-defined architecture with 11 HDR cameras and an AI-enabled computing platform, enhancing driver assistance features and overall user experience.
See More
Li Auto Reports Significant Q4 Earnings Decline
- Revenue and Delivery Decline: Li Auto's Q4 2025 revenue fell 35% year-over-year to 28.8 billion yuan ($4.11 billion), missing the analyst consensus of 42.8 billion yuan, reflecting dual pressures from reduced deliveries and weak market demand.
- Margin Compression: Due to recall costs, vehicle gross margin contracted from 19.7% to 16.8%, with an adjusted operating loss of 188.4 million yuan ($26.9 million) contrasting sharply with a profit of 4.2 billion yuan in the prior year, indicating a significant deterioration in profitability.
- Cash Flow Situation: The company reported free cash flow of 2.5 billion yuan ($352.9 million) in Q4, a substantial drop from 6.1 billion yuan a year earlier, and a negative 8.9 billion yuan in Q3, highlighting challenges in cash management and operational efficiency.
- Future Outlook: Li Auto expects Q1 2026 revenue between 20.4 billion and 21.6 billion yuan, representing a year-over-year decline of 21.3% to 16.7%, with vehicle deliveries projected at 85,000 to 90,000 units, indicating a challenging market environment in the coming months.
See More
