Li Auto Q1 Revenue Drops 11.4%, Gross Margin Slumps to 7.9%
LI•Li Auto’s first-quarter revenue fell 11.4% year-over-year to RMB23.0 billion and declined 20.1% sequentially, while vehicle sales dropped 12.7% year-over-year to RMB21.5 billion. Gross margin contracted to 7.9% and net loss reached RMB2.3 billion due to vehicle margin collapse to 6.1%.
1. Delivery Trends
Li Auto delivered 95,142 vehicles in the first quarter, marking a 2.5% year-over-year increase but a 12.9% sequential decline from 109,194 units in Q4 2025.
2. Revenue Performance
Total revenues reached RMB23.0 billion, down 11.4% year-over-year and 20.1% from the previous quarter, while vehicle sales fell 12.7% year-over-year to RMB21.5 billion.
3. Margin Compression
Gross profit dropped 66.0% year-over-year to RMB1.8 billion, pushing gross margin down to 7.9% as vehicle margin collapsed from 19.8% to 6.1%.
4. Net Loss Expansion
Operating loss widened to RMB3.0 billion with an operating margin of negative 13.0%, and net loss grew to RMB2.3 billion, swinging sharply from prior-year net income.
