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Li Auto (LI) Posts Q3 Loss as Deliveries Drop 39% YoY

Li Auto Inc. (NASDAQ:LI) is one of the best EV charging stocks to buy now. Li Auto Inc. (NASDAQ:LI) holds a Hold consensus from 8 analysts, with 2 Buys, 5 Holds, and 1 Sell. The average price target is $23.21, ranging from $17 to $32, suggesting a 26.2% upside from the current $18.39

On November 26, Li Auto Inc. released its Q3 2025 financial results, where it reported a non-GAAP diluted net loss per ADS of RMB 0.36 ($0.05), missing analyst consensus estimates of RMB 0.64. The quarter’s total revenue reached RMB 27.4 billion ($3.8 billion), surpassing analyst expectations by 3.28%. However, the figure is a 36.2% decline year-over-year, due to what management described as a sharp drop in vehicle deliveries amid supply chain disruptions and the impact of a Li MEGA vehicle recall.

The company also recorded a RMB 624.4 million ($87.7 million) net loss during the quarter, a massive swing from the net income of RMB 2.8 billion in Q3 2024. Management explained that the swing was due to a 37.4% year over year vehicle sales decline – total vehicle deliveries fell 39.0% to 93,211 units compared to the prior-year quarter. Unsurprisingly, gross profit tanked by 51.6% year-over-year to RMB 4.5 billion ($627.8 million), yielding a gross margin of 16.3%, down from 21.5%. Management attributed the compression to Li MEGA recall-related costs, noting that excluding these, the gross margin would have been 20.4%.

Li Auto Inc. (NASDAQ:LI) is a leading Chinese EV manufacturer that is aggressively building EV charging infrastructure. The company has committed over RMB 6 billion to expand its supercharging network, targeting more than 5,000 supercharging stations by year-end 2025. These stations are equipped with proprietary 5C fast-charging technology and are designed to cover 90% of China’s major highway routes and urban centers.

While we acknowledge the potential of Li Auto Inc. (NASDAQ:LI) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NIO and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Consumer Goods Stocks Billionaires Are Quietly Buying and Goldman Sachs Penny Stocks: Top 12 Stock Picks.

Disclosure: None. This article is originally published at Insider Monkey.

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