Li Auto Launches $1B Buyback Plan and Accelerates Shift to Embodied Intelligence

On March 24, Li Auto announced a share repurchase program of up to $1 billion, valid through the end of March 2027, aimed at bolstering market confidence. The announcement drove its U.S.-listed shares up more than 5% intraday, while its Hong Kong-listed shares rose 3.3% the following day. The company stated that this move demonstrates its strong confidence in its strategic outlook and emphasized that it holds cash reserves of RMB 101.2 billion—sufficient to support the buyback. Meanwhile, Li Auto is aggressively advancing its transformation toward “embodied intelligence,” no longer viewing vehicles merely as transportation tools but as intelligent agents built on a “perception-brain-body” architecture. Its upcoming next-generation L9 Livis will feature two self-developed 5nm Mach 100 chips (delivering a combined effective computing power of 2,560 TOPS), the world’s first fully drive-by-wire chassis, and an 800V fully active suspension system. The vehicle will also leverage the company’s proprietary large AI model to achieve 3D spatial understanding and intuitive decision-making. Despite a projected decline in deliveries and a significant drop in profits for 2025, Li Auto continues to ramp up R&D investment—allocating RMB 11.3 billion for the year, with half dedicated to AI-related initiatives. The company has simultaneously restructured its organization, realigning teams around foundational models, software entities, and hardware entities to accelerate iteration speed. In 2026, Li Auto will focus on refreshing its L-series lineup, scaling up its pure electric vehicle offerings, and reforming its retail partner model, aiming to reclaim its position among the top tier of EV sales leaders.