Li Auto Posts Losses for Two Straight Quarters Amid Ongoing Transformation Pains

Li Auto's operational challenges continue. Following a quarterly loss in the third quarter of 2025 due to the recall of its MEGA model, the company's performance remained weak in the fourth quarter of 2025, indicating it has yet to overcome the growing pains of its transition period. Although the company has returned to a "startup mode" to tackle these challenges, two consecutive quarters of poor results show that Li Auto has not yet emerged from its downturn, and market concerns over its product strategy and profitability are intensifying.