Li Auto Inc. (NASDAQ: LI) isn't just building electric vehicles anymore. During its second quarter earnings call on Wednesday, the Chinese automaker laid out a strategy that sounds a lot like Apple and Huawei: control the technology that matters most. But here's the twist—it's not about dumping its suppliers.
Li Auto's Apple and Huawei Ambition: Why It's Not Abandoning Nvidia or CATL
MarketDash
Li Auto says its in-house chips and batteries are about following Apple and Huawei—not replacing Nvidia or CATL.
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In-House Tech: Control, Not Replacement
As the EV race shifts toward software, AI, and vertically integrated tech, Li Auto says owning key components will be a major competitive edge. But that doesn't mean it's turning its back on the companies that supply it today.
CFO Johnny T. Li was quick to clear the air. "I need to emphasize, by choosing to develop these components in-house doesn't mean that our suppliers' products aren't great."
He then gave a shout-out to two of the biggest names in tech and batteries. "We developed our in-house Mach M100 chips. That doesn't make NVIDIA any less respectable as the best chip company in the world. As we develop our in-house batteries, that doesn't make CATL any less respectable as [one of] the best battery companies. Well, CATL as well as many other brands, which are all great battery brands. That doesn't make them any less respectable."
The point is subtle but important. Li Auto isn't trying to replace Nvidia or CATL. It's trying to own more of the technology stack that sets its cars apart in the long run.
Why Apple and Huawei Are the Blueprint
Management argues that the auto industry is entering an era where intelligent software and hardware integration will matter as much as mechanical engineering. Earlier in the call, executives said chips and batteries will be the most important competitive advantage. The company has already developed its own autonomous driving chip, battery cells, battery packs, battery management systems, and thermal management tech. Li Auto-branded batteries are expected to start appearing in its vehicles during the second half of this year.
That strategy led to perhaps the most revealing comment of the earnings call. Li Auto is building the technology internally, management said, to be "like companies like Apple and Huawei"—firms that keep their most critical components in their own hands.
It's a fitting comparison. Apple and Huawei have spent years designing critical tech in-house, which lets them tightly integrate hardware and software while leaning less on third-party suppliers. Li Auto says it's going for the same playbook as intelligent vehicles become increasingly AI-driven.
What Investors Should Take Away
Li Auto's message wasn't that Nvidia or CATL are becoming less important. In fact, management explicitly said the opposite. The real insight is that Li Auto increasingly sees long-term competitiveness through the lens of technology ownership, not just vehicle manufacturing.
For investors, the key question isn't whether the company can replace industry leaders—it's whether its investment in proprietary chips, batteries, and software can build the same kind of durable moat that Apple and Huawei have created over time.
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