Li Auto Upgrade Follows Q1 RMB2.1B Loss on RMB22.98B Revenue
LI•Macquarie upgraded Li Auto to Neutral from Underperform after Q1 net loss of RMB2.1 billion on RMB22.98 billion revenue and gross margin collapsing to 7.9%. The brokerage flagged stabilizing demand before late-June L8 and H2 L7 launches, cut 2026 delivery forecast by 12% and expects a net loss of RMB0.32 per share.
1. Macquarie Rating Upgrade
Macquarie raised its rating on Li Auto to Neutral from Underperform, citing easing key challenges and noting that Q1 likely represented the company’s weakest period of the year.
2. Q1 Financial Performance
Li Auto posted a net loss of RMB2.1 billion, revenue of RMB22.98 billion (down 20.1% sequentially, 11.4% year-on-year) and a gross profit margin sliding to 7.9% from 17.8% in the previous quarter.
3. Product Launch Timetable and Demand
Li Auto plans to introduce its new L8 model in late June and follow with L7 launches in the second half of 2026, targeting a 20% increase in annual vehicle volumes as demand begins to stabilize.
4. Balance Sheet and Forecast Revisions
The company holds approximately RMB94 billion in cash against a market cap of about RMB113 billion, has authorized a US$1 billion share buyback and has cut its 2026 delivery forecast by 12%, now expecting a net loss of RMB0.32 per share.




