When your electric vehicle bursts into flames, someone usually has to answer for it. In the case of Li Auto Inc. (LI), the Chinese automaker reportedly decided 14 employees would be held accountable after a recall of its Mega MPV.

Fire, Recall, and Consequences

According to Chinese media outlet 21jingji, which cited internal memos at the company, Li Auto implemented accountability measures that resulted in multiple terminations. The moves follow an incident last month where a Li Mega went up in flames after sparks flew from the vehicle's chassis. Not exactly the kind of fireworks you want your electric minivan producing.

The company subsequently recalled over 11,411 units of the vehicle, pointing to coolant leakage issues as the culprit. When contacted for comment, Li Auto didn't immediately respond.

Earnings and Strategic Moves on the Horizon

The timing is notable because Li Auto is just days away from reporting its third-quarter financial results. The company announced it will release earnings on November 26, followed by a conference call with investors and analysts. Nothing like workforce cuts right before an earnings call to keep things interesting.

On a more positive note, Li Auto also announced an exclusive deal with Hesai Technology (HSAI) to serve as the sole supplier of LiDAR technology. This matters because LiDAR is essential for the company's advanced driver assistance systems and autonomous driving capabilities. Under the agreement, Hesai will supply LiDAR tech for all of Li Auto's upcoming models, including the "L" Series, "i" Series, and "MEGA" line.

Expansion and Delivery Updates

The automaker shared its October delivery figures, reporting it had delivered 31,767 vehicles during the month. Li Auto also expanded its footprint internationally, launching operations in Uzbekistan in October after establishing its overseas headquarters in Hong Kong.

Price Action: LI shares slipped 2.86% to $19.36 during pre-market trading, according to market data.