Li Auto Inc.LI
NASDAQ • Consumer Cyclical
$20.02
P/E
17.78
PEG
—
FCF Yield
—
Rev Growth YoY
-32.4% YoY
Gross Margin
17.8%
Health Score
5/10
D/E Ratio
0.25
Confidence
—
Business Snapshot
Li Auto is a Chinese electric vehicle (EV) manufacturer that specializes in extended-range electric vehicles (EREVs), a technology that combines a battery pack with a small internal combustion engine to eliminate range anxiety. The company competes in the rapidly growing but intensely competitive Chinese EV market, where it ranks among the top domestic startups by delivery volume alongside NIO and XPeng. With trailing twelve-month revenue of $112.12B, Li Auto is a large-scale automaker that has historically prioritized profitability over pure growth, a distinguishing strategy in a sector where most peers operate at a loss. The company’s recent shift toward fully battery-electric models expands its addressable market but also increases capital intensity and competitive pressure.
Financial Health
Gross margin improved to 17.8% from 16.3% a year earlier, indicating better unit economics, but net margin is reported at 100.0% — an implausible figure that contradicts the underlying trailing net income of $1.13B on revenue of $112.12B (implying a net margin near 1%). The balance sheet is moderate: debt-to-equity of 0.25x is conservative, and a current ratio of 1.81x provides adequate short-term liquidity...
Risk Assessment
- EARNINGS QUALITY — Li Auto missed earnings estimates in all four of the most recent quarters (0 of 4 beats), indicating poor forecasting accuracy and frequent earnings surprises.
- REVENUE DECELERATION — Revenue fell 32.4% year-over-year, a severe contraction that overshadows the modest 3.6% sequential recovery and points to structural demand challenges.
- FCF / CASH BURN — Free cash flow of $‑12.82B signals a substantial cash drain that may require debt issuance, equity dilution, or asset sales to sustain operations.
- 52-WEEK POSITION — The current price of $20.02 is...
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