Li Auto Inc.

Total revenues in Q2 2026 were RMB 25.7 billion, down 15.1% year over year and up 11.7% quarter over quarter. Vehicle sales were RMB 24.1 billion, down 16.7% year over year and up 11.8% quarter over quarter. Gross profit was RMB 2.8 billion, down 53.3% year over year and up 56.9% quarter over quarter; gross margin was 11.0% versus 20.1% in the same period last year and 7.9% in the prior quarter. Vehicle margin was 9.4% versus 19.4% a year ago and 6.1% last quarter. Operating loss was RMB 2.3 billion versus RMB 827 million income last year; net loss was RMB 1.7 billion versus RMB 1.1 billion net income last year, and diluted net loss per ADS was RMB 1.69 versus diluted net earnings of RMB 1.03 last year. For Q3 2026, Li Auto expects deliveries of 95,000 to 100,000 vehicles and total revenues of RMB 26.6 billion to RMB 28.0 billion.

Xiang Li framed the quarter as a transition period: the company completed a full refresh of the L-Series while keeping its lead in the RMB 200,000 and above NEV market. He stressed that Li Auto is moving toward a dual-energy portfolio, with EREV and BEV each now about half of total sales, and said upcoming BEV launches should lift the BEV share further. His tone was confident and technology-focused, highlighting in-house chips, batteries, 5C charging, and embodied AI as the core of the company’s long-term moat.

Johnny Tie Li said Q2 results reflected lower deliveries and product mix changes, which drove revenue down and compressed margins. He cited RMB 2.8 billion of gross profit, RMB 5.1 billion of operating expenses, RMB 87.5 billion of quarter-end cash, and RMB 6.0 billion of expected full-year CapEx. He also said cash flow should improve from Q3 with new-model deliveries, but that full-year positive operating cash flow and free cash flow will depend largely on Q4 deliveries.

Analysts focused on the refreshed L-Series, Li MEGA, commodity inflation, cash flow, i9, and autonomous driving progress. Management said the L-Series refresh is complete, L9 and L8 are seeing strong reception, and the new L6 is on track to support about 10,000 units per month; it also acknowledged short-term disruption from inventory clearing, ramp-up, and sales policy changes. On costs, management said battery, memory, chip, and PCB inflation is pressuring gross margin, but early procurement commitments and in-house technology should help over time; on autonomy, it said MACH M100 is now in production across L9, L8, and L6, with OTA-driven improvements, a 3D Vision Transformer roadmap, and specific Q4 targets for better range, accuracy, and scene understanding.