Li Auto's Net Profit Plummets 86% in 2025 Amid First-Ever Annual Delivery Decline

[Financial Performance] Li Auto reported revenue of RMB 112.3 billion in 2025, a year-over-year decline of 22.3%, with net profit plunging 85.8% year-over-year to just RMB 1.139 billion.

Key Metrics: Dual Decline in Deliveries and Profitability

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  Full-year deliveries totaled 406,300 vehicles, down 18.8% year-over-year, marking the company’s first-ever annual sales decline;

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  Vehicle gross margin dropped to 17.9% (from 19.8% in 2024), and free cash flow turned negative at RMB -12.8 billion;

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  Q4 deliveries reached 109,000 vehicles, up 17.1% quarter-over-quarter, showing early signs of stabilization.

Strategic Foundation: Transition Toward Embodied Intelligence

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  CEO Li Xiang stated that 2026 will be a pivotal year for the company’s transformation from an electric vehicle maker into an embodied intelligence enterprise;

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  Despite profit pressure, Li Auto remains the only Chinese EV startup to have achieved profitability for three consecutive years while surpassing RMB 100 billion in annual revenue;

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  The product lineup continues to expand, yet the “sell more, earn more” logic is being challenged, necessitating an urgent overhaul of its profit model.