Li Auto Faces First Quarterly Loss Since 2022 Amid Declining Sales
Beijing, Thursday, 27 November 2025.
Li Auto reported a net loss of RMB624.4 million in Q3 2025, driven by a 39% drop in vehicle deliveries and challenges in the EV market, marking its first loss since 2022.
Financial Setback for Li Auto
Li Auto Inc. (Nasdaq: LI; HKEX: 2015), a prominent player in China’s new energy vehicle market, reported a net loss of RMB624.4 million (approximately $87.7 million) for the third quarter of 2025. This marks the company’s first quarterly loss since 2022, primarily driven by a 39% decline in vehicle deliveries and ongoing challenges in the EV market [1][2]. The company’s total revenues for the quarter fell to RMB27.4 billion ($3.8 billion), representing a 36.2% decrease compared to the same period last year [1].
Declining Vehicle Deliveries
The quarterly vehicle deliveries for Li Auto plummeted to 93,211 units, marking a significant 39% year-over-year decline. This downturn reflects the broader challenges faced by the electric vehicle sector in China, where competitive pressures and economic headwinds have adversely impacted growth [1][3]. The company’s vehicle sales revenue also decreased to RMB25.9 billion ($3.6 billion), a drop of 37.4% from the previous year [1].
Impact of Li Mega Recall
A significant factor contributing to Li Auto’s financial woes was the Li Mega recall, which notably affected the company’s vehicle margin. The vehicle margin fell to 15.5% in Q3 2025, down from 20.9% in the same quarter the previous year. The recall contributed to an estimated loss of around RMB1.1 billion, exacerbating the company’s financial strain [3][4].
Future Outlook and Strategic Moves
Looking ahead to the fourth quarter of 2025, Li Auto expects to deliver between 100,000 and 110,000 vehicles, which still represents a year-over-year decline of 37.0% to 30.7%. The company projects total revenues to range between RMB26.5 billion ($3.7 billion) and RMB29.2 billion ($4.1 billion), reflecting a year-over-year decrease of 40.1% to 34.2% [2][5]. Despite these challenges, Li Auto continues to expand its retail and service network, with 542 retail stores and 3,420 supercharging stations operational as of September 30, 2025 [1].