Li Auto Inc. (LI) is having a rough stretch. The Chinese electric vehicle maker announced Monday that it delivered 33,181 vehicles in November 2025, pushing its cumulative total to 1,495,969 units. That sounds impressive until you realize quarterly deliveries just dropped 31.9% compared to last year—and its main rivals are eating its lunch.
The company is trying to stay optimistic, saying it's preparing to boost monthly production of the Li i6 to 20,000 units by early next year. It's also rolling out an OTA 8.1 software update in early December. Li Auto is talking big about "organizational upgrades, a stronger product lineup, and new technologies" as it positions itself for what it calls the next decade of competitiveness, evolving its vehicles into "embodied intelligence." That's a lot of corporate speak for "we're working on it."
The Competition Is Fierce
While Li Auto stumbles, its competitors are sprinting. Nio Inc. (NIO) reported genuinely strong November 2025 results, delivering 36,275 vehicles—a whopping 76.3% year-over-year increase. That total included 18,393 premium Nio EVs, 11,794 ONVO family models, and 6,088 FIREFLY high-end compact EVs. Nio's cumulative deliveries now stand at 949,457 vehicles through November.
XPeng Inc. (XPEV) also had a solid month, delivering 36,728 smart EVs, up 19% year-over-year. Even more impressive, XPeng's cumulative deliveries for January through November 2025 jumped 156% to 391,937 units, including 39,773 overseas deliveries—up 95% from last year.
XPeng is making noise with its technology push too. The company highlighted major advancements at its 2025 AI Day, including VLA 2.0, Robotaxi, and its Next-Gen IRON humanoid robot, all expected to hit mass production in 2026. Its XNGP assisted-driving technology reached 84% urban usage in November, and XPeng plans to launch a VLA 2.0 pilot in China later this month.
A Difficult Year for Li Auto
Li Auto stock has tanked 23% year-to-date, reflecting weak quarterly earnings, brutal competition, and investor anxiety over the company's transition to pure electric vehicles. The shares took another hit last week after the company reported sharply weaker third-quarter fiscal 2025 results.
The numbers were rough. Revenue dropped 36.2% year-over-year to 27.4 billion yuan (about $3.80 billion), barely topping estimates. The quarterly adjusted net earnings swung to a loss of 0.36 yuan per ADS, missing expectations entirely. Vehicle sales fell 37.4% as deliveries declined 39% to just 93,211 units.
The quarterly vehicle margin shrank to 15.5%—or 19.8% if you exclude recall costs, which is a painful distinction to have to make. Overall gross margin slipped to 16.3%. Li Auto posted an adjusted operating loss of 912.5 million yuan and an adjusted net loss of 360.3 million yuan, a stark contrast to the strong profits it posted last year. Free cash flow also turned negative.
CEO Xiang Li tried to strike a balanced tone, pointing to strong demand for the new Li i8 and Li i6 models while acknowledging competitive pressures and supply chain headwinds.
What's Next?
For fourth-quarter fiscal 2025, Li Auto expects revenue between 26.5 billion yuan and 29.2 billion yuan, with deliveries of 100,000 to 110,000 units. Both figures signal steep year-over-year declines in what's become an increasingly brutal EV market.
The company is trying to build out its infrastructure. By the end of November, Li Auto operated 544 retail stores across 157 cities and 556 service centers and authorized body and paint shops in 227 cities. It has also expanded its charging network to 3,614 supercharging stations with 20,027 stalls across China.
That's all well and good, but infrastructure alone won't solve the fundamental problem: competitors are outperforming Li Auto on deliveries, technology innovation, and investor confidence. Li Auto shares traded at $18.10 during premarket on Friday, down 1.58%—dangerously close to the 52-week low of $17.59. The company needs more than production increases and software updates. It needs a turnaround story that investors can actually believe in.
