Li Auto Reports Q1 2026 Revenue of RMB 23B and Cash Reserves of RMB 94.3B, Completes Dual Strategy in BEV and EREV

In the first quarter of 2026, Li Auto reported revenue of RMB 23 billion, delivered 95,000 vehicles—a year-over-year increase of 2.5%—and ranked as the top-selling Chinese brand in the new energy vehicle (NEV) segment priced above RMB 200,000. The company’s gross margin for the quarter was 7.9%, impacted by shifts in product mix, rising raw material costs, model transitions, and increased R&D investments in artificial intelligence. During the reporting period, the Li Auto i6 completed its production ramp-up, achieving average monthly sales exceeding 20,000 units, enabling the company to solidify its dual-track strategy encompassing both battery electric vehicles (BEVs) and extended-range electric vehicles (EREVs). As of the end of Q1, the company held cash reserves of RMB 94.3 billion and net cash of RMB 83.3 billion, providing strong financial support for the L-series model refresh, expansion of its BEV portfolio, and AI technology development. In Q1, Li Auto proactively halted production of the outgoing L-series models ahead of their replacement to avoid steep discounting and inventory clearance, thereby safeguarding existing owners’ interests and maintaining price stability. Additionally, for customers who placed orders in 2025 but were unable to take delivery before the adjustment of China’s purchase tax policy in 2026, the company covered the resulting tax difference at a cost exceeding RMB 500 million. Despite rising costs for batteries and chips, Li Auto absorbed these increases internally without passing them on to consumers. The all-new Li L9 began deliveries in May, featuring the company’s self-developed third-generation range extender, a 72.7 kWh 5C ultra-fast charging battery, the Maha M100 chip, and multiple new chassis technologies. The Livis variant marks the full-stack mass production of Li Auto’s in-house developed chips, operating system, large AI models, and drive-by-wire chassis. It garnered over 10,000 firm orders within two weeks of its launch. The new Li L8 is scheduled to debut by the end of June, positioned as a “five-seater version of the L9” with an emphasis on driving dynamics. As of the end of April, Li Auto’s network of ultra-fast charging stations exceeded 4,077, supporting models including the MEGA, i8, i6, and the new-generation L series. The company forecasts Q2 deliveries between 95,000 and 100,000 units and reaffirms its full-year target of 20% year-over-year sales growth. R&D expenses in Q1 amounted to RMB 2.7 billion, up 8.3% year-over-year. Total R&D spending was RMB 11.1 billion in 2024 and RMB 11.3 billion in 2025, with a projected full-year budget of approximately RMB 12 billion for 2026—over 50% of which will be allocated to AI-related initiatives. Meanwhile, sales and administrative expenses declined by 19% year-over-year. Li Auto is actively advancing its transformation into an embodied intelligence company, targeting by the second half of 2026 to deliver a smart driving experience on par with Tesla’s FSD V14 performance in the U.S.