Chinese EV maker Li Auto (LI) reported its Q3 earnings results, and the numbers disappointed Wall Street. Revenue and delivery guidance both came in below expectations as competition in China’s electric vehicle market continues to intensify. Following the update, LI stock is trading lower in pre-market trading.
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Q3 Misses Expectations
Li Auto reported revenue of RMB 27.4 billion ($3.8 billion) for the quarter, down 39% year-over-year, and below analyst expectations of roughly RMB 32.1 billion, marking its steepest drop since the company listed in the U.S. in 2020. The decline was driven by weaker demand and supply chain challenges.
The company also swung to a loss. Li Auto posted a net loss of RMB 624.4 million ($87.7 million), compared with a profit in the same quarter last year. Analysts were expecting a smaller loss, highlighting that rising competition, higher operating expenses, and slower deliveries put pressure on margins.
Deliveries Slide Sharply
Vehicle deliveries were 93,211 units in Q3, down 39% from 152,831 units a year ago and lower than the 111,074 units recorded in Q2 2025.
The drop in deliveries shows how quickly demand has cooled, especially as rivals launch new models and push aggressive pricing in Li Auto’s core segments.
Weak Q4 Outlook Adds Pressure
Looking ahead, Li Auto guided for 100,000 to 110,000 deliveries in Q4 — well below the roughly 135,600 units analysts had anticipated.
Revenue is expected to come in between RMB 26.5 billion and 29.2 billion (approximately $3.7–$4.1 billion), again falling short of consensus forecasts.
This underwhelming forecast suggests the company does not expect any quick rebound and confirms that demand remains weak.
Is Li Auto Stock a Good Buy?
Given the ongoing challenges, Wall Street has a Hold consensus rating on Li Auto stock based on three Buys, seven Holds, and one Sell recommendation. The average LI stock price target of $26.01 indicates 41.98% upside potential from current levels.
