- Li Auto posted a net loss of RMB 624 million yuan ($87.7 million) in the third quarter, marking its first return to a loss since the fourth quarter of 2022.
- Li Auto guided fourth-quarter vehicle deliveries to range between 100,000 and 110,000 units, representing a year-on-year decline of 37.0 percent to 30.7 percent.
Li Auto (NASDAQ: LI, HKG: 2015) returned to a loss last quarter for the first time in three years, as delivery volumes plunged and the recall of its Li Mega MPV (multi-purpose vehicle) had a negative impact.
The company posted a net loss of RMB 624 million ($87.7 million) in the third quarter, its first loss since the fourth quarter of 2022, according to its unaudited earnings report released today.
It had a net income of RMB 2.8 billion in the same period last year and a net income of RMB 1.1 billion in the second quarter.
Li Auto recorded a non-GAAP adjusted net loss of RMB 360 million in the third quarter, compared to a non-GAAP net income of RMB 3.9 billion in the third quarter 2024 and a net income of RMB 1.5 billion in the second quarter 2025.
The deterioration in operating performance was primarily due to a significant reduction in vehicle deliveries and the impact of the Li Mega MPV (multi-purpose vehicle) recall.
Li Auto delivered 93,211 vehicles in the third quarter, falling within its guidance range of 90,000 to 95,000 units.
However, the deliveries declined 39.01 percent year-on-year and were down 16.08 percent quarter-on-quarter, continuing their weak sales performance this year.
Li Auto expects this weakness to persist in the current quarter, guiding for fourth-quarter vehicle deliveries between 100,000 and 110,000 units, representing a year-on-year decline of 37.0 percent to 30.7 percent.
This guidance implies the company currently expects combined November and December deliveries of 68,233 to 78,233 vehicles, considering its October delivery of 31,767 units.
Li Auto's third-quarter revenue came in at RMB 27.4 billion, down 36.2 percent year-on-year and down 9.5 percent quarter-on-quarter.
It guided fourth-quarter revenue to range between RMB 26.5 billion and RMB 29.2 billion, representing a year-on-year decline of 40.1 percent to 34.2 percent.
Vehicle sales revenue for the third quarter was RMB 25.9 billion, down 37.4 percent year-on-year and down 10.4 percent quarter-on-quarter.
Vehicle margin in the third quarter was 15.5 percent, lower than the 20.9 percent recorded in the third quarter 2024 and the 19.4 percent in the second quarter 2025.
The decline in vehicle margin was primarily attributable to anticipated costs related to the Li Mega recall in the third quarter 2025, as well as increased unit manufacturing costs due to lower production volumes.
Excluding the impact of Li Mega recall-related costs, the vehicle margin for the third quarter 2025 would have been 19.8 percent.
The company's overall gross margin for the third quarter was 16.3 percent, compared to 21.5 percent in the third quarter of 2024 and 20.1 percent in the second quarter of 2025.
Excluding the impact of costs related to the Li Mega recall, the gross margin for the third quarter of 2025 would have been 20.4 percent.
The company's gross profit for the third quarter was RMB 4.5 billion, down 51.6 percent from RMB 9.2 billion in the third quarter of 2024 and down 26.3 percent from RMB 6.1 billion in the second quarter of 2025.
This indicates that the Li Mega recall resulted in about RMB 1.1 billion in losses for the company.
Li Auto's third-quarter R&D expenses totaled RMB 3.0 billion, representing a 15.0 percent increase from RMB 2.6 billion in the third quarter 2024 and a 5.8 percent rise from RMB 2.8 billion in the second quarter 2025.
Its sales, general, and administrative (SG&A) expenses for the third quarter were RMB 2.8 billion, down 17.6 percent from RMB 3.4 billion in the third quarter of 2024, but up 1.9 percent from RMB 2.7 billion in the second quarter of 2025.
The decrease in SG&A expenses compared to the third quarter of 2024 was primarily due to the recognition of share-based payment expenses related to the CEO performance award.
As of September 30, 2025, Li Auto's cash position stood at RMB 98.9 billion.
