Li Auto Inc. reported an operating loss of 520 million yuan for 2025. This result reverses two consecutive years of profits exceeding 7 billion yuan. Revenue and vehicle deliveries fell significantly across the fourth quarter and the full year. Management cited intensified competition and challenges in the pure-electric vehicle segment for the decline.
The company established a 20% sales growth target for 2026. Li Auto plans to launch several new models, including a revamped Li L9 in the second quarter. The automaker will dedicate 6 billion yuan to AI initiatives in 2026. This allocation represents half of the company's projected 12 billion yuan R&D budget. The strategy focuses on autonomous driving and in-house chip development to transform the firm into an embodied AI company.
Li Auto’s American depositary receipts dropped in premarket trading after the report. The company's Hong Kong-listed shares also declined following the announcement.