Li Auto Inc. (LI) shares rose Friday after the Chinese electric vehicle maker reported crossing the 1.5 million cumulative vehicle delivery milestone in December 2025. It's good news after months of watching demand soften, though the full-year numbers tell a more complicated story about survival in China's increasingly cutthroat EV market.
The company delivered 44,246 vehicles in December, bringing total cumulative deliveries to 1,540,215 since inception. That's a solid 33.35% jump from November's 33,181 deliveries, suggesting the company found its footing heading into year-end. But zoom out slightly and the picture changes: December deliveries fell 24.38% compared to the same month last year.
For the fourth quarter overall, Li Auto delivered 109,194 vehicles, landing at the upper end of its guidance range of 100,000 to 110,000 units. That's an improvement from the third quarter's 93,211 deliveries and shows some stabilization after a rocky stretch.
Here's where it gets tougher. Full-year 2025 deliveries came in at 406,343 vehicles, down nearly 19% from 500,508 deliveries in 2024. That decline captures the reality of operating in China's hyper-competitive EV landscape, where even established players are fighting tooth and nail for market share.
International Expansion and New Products
Li Auto isn't just hunkering down at home. In December, the company expanded internationally by launching its Li L9, L7, and L6 models in Egypt, Kazakhstan, and Azerbaijan. These launches mark Li Auto's first push into Central Asia, the Caucasus region, and Africa, testing whether its vehicles can find audiences beyond the brutal Chinese market.
The company also officially launched Livis, its Li AI glasses, which reportedly received positive user feedback. As of December 31, 2025, Li Auto operated 548 retail stores across 159 cities in China and maintained 3,907 supercharging stations with 21,651 charging stalls throughout the country.
How the Competition Fared
XPeng Inc. (XPEV) reported a strong December performance on Thursday, delivering 37,508 vehicles in December 2025, representing a modest 2% year-over-year increase. That's a smaller volume than Li Auto but at least moving in the right direction annually.
Nio Inc. (NIO) posted even stronger numbers with a record 48,135 vehicle deliveries in December 2025, marking a 54.6% year-over-year increase. Among the three Chinese EV rivals, Nio's momentum stands out as particularly impressive.
Recent Financial Struggles
The delivery challenges aren't happening in isolation. In November 2025, Li Auto reported a steep decline in fiscal third-quarter 2025 results, weighed down by lower deliveries, margin compression, and costs tied to a major vehicle recall. Vehicle sales dropped 37.4% to $3.6 billion in the quarter, driven primarily by weaker delivery volumes.
So yes, December's sequential improvement matters. It shows Li Auto can still compete and execute when it needs to hit targets. But the broader trend reveals just how difficult the environment has become for Chinese EV makers, even ones with established brand recognition and retail infrastructure.
LI Price Action: Li Auto shares were up 2.95% at $17.43 during premarket trading on Friday.
