Li Auto Ties Executive Options to HK$1 Trillion Market-Value Goal

Li Auto Inc. has granted 35 million stock options to three senior executives, tying the awards to a steep increase in the Chinese electric-vehicle maker’s market value over the next decade.

The grants will fully vest only if Li Auto’s market capitalization reaches HK$1 trillion ($128 billion), according to a plan announced Tuesday. The structure, which echoes Tesla Inc.’s milestone-based pay packages, appears designed to retain key executives and shore up investor confidence as Li Auto contends with widening losses, executive departures and skepticism over its push into embodied artificial intelligence.