Li Auto Turns to AI After Sales Slump Pushes It Back Into the Red
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A Li Auto showroom on Feb. 27, 2026. Photo: VCG
Li Auto Inc. swung back to an operating loss in 2025 after two years of profitability, as vehicle sales and revenue slid amid intensifying competition and setbacks in its push into the pure-electric market.
The Nasdaq-listed automaker reported an operating loss of 520 million yuan ($75.3 million) for 2025, a sharp reversal from an operating profit of 7.4 billion yuan in 2023 and 7 billion yuan in 2024, according to its annual report released Thursday.
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- Li Auto reported a 2025 operating loss of 520 million yuan, reversing from over 7 billion yuan in profit in 2023 and 2024, as revenue fell 22.3% and deliveries dropped 18.8%.
- The company faced intensified competition, unsuccessful pure-electric launches, and mid-to-high-end market weakness; AI now receives half of its 11.3 billion yuan R&D budget.
- For 2026, Li Auto plans to launch new models, grow exports, invest heavily in AI, and projects vehicle sales growth above 20%.
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Who’s Who
- Li Auto Inc.
- Li Auto Inc. experienced an operating loss of 520 million yuan in 2025, a reversal from previous profitability. Revenue and vehicle deliveries declined due to intensifying competition and setbacks in its pure-electric market expansion. The company is now focusing on new products and a significant strategic pivot towards artificial intelligence for a rebound. They project increased sales for 2026, with substantial R&D investment in AI.
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What Happened When
- 2023：
- Li Auto reported an operating profit of 7.4 billion yuan.
- 2024：
- Li Auto reported an operating profit of 7 billion yuan.
- March 2024：
- Li Auto launched its first all-electric model, the MEGA.
- July 2025：
- Li Auto's i8 model faced public controversy over a crash-test video.
- September 2025：
- Li Auto launched the lower-priced i6 model.
- November 2025：
- Li Auto announced a companywide pivot to become an embodied intelligence firm.
- December 2025：
- Li Auto began exporting to Egypt, Kazakhstan, and Azerbaijan.
- 2025：
- Li Auto swung back to an operating loss (520 million yuan) after two years of profitability. Revenue for 2025 fell 22.3% year on year to 112.3 billion yuan, as vehicle deliveries dropped 18.8% to 406,000 units. The company posted a net profit of 1.14 billion yuan due to investment and interest income.
- January 2026：
- Li Auto restructured its engineering teams to focus on AI and intelligent agents, including humanoid robot development.
- Thursday, March 12, 2026：
- Li Auto released its annual report for 2025.
- First quarter of 2026：
- Li Auto forecasts deliveries of 85,000 to 90,000 vehicles, a year-on-year decline of 3.1% to 8.5%. Revenue is projected to fall 16.7% to 21.3 billion yuan.
- March 2026：
- CEO Li Xiang said during an earnings call that i6 delivery bottlenecks had been resolved and that monthly production capacity was now 20,000 units.
AI generated, for reference only
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