Li Auto Inc. (NASDAQ:LI) stock fell Thursday after the Chinese electric vehicle maker reported mixed fiscal first-quarter 2026 results.

Revenue Tops Estimates Despite Decline

Quarterly revenue fell 11.4% year over year to 23.0 billion Chinese yuan ($3.33 billion), but exceeded the analyst consensus estimate of $3.14 billion. Revenue declined 20.1% from the previous quarter.

Adjusted net loss came in at 2.09 yuan per American depositary share, or 30 cents, compared with Wall Street expectations for a profit of 7 cents per share.

Vehicle sales declined 12.7% year over year to $3.1 billion, primarily due to a lower average selling price tied to changes in product mix. Sequentially, vehicle sales fell 21.0%, driven by lower deliveries during the Chinese New Year holiday period and weaker pricing from product mix changes.

Li Auto delivered 95,142 vehicles during the quarter, up from 92,864 vehicles a year earlier but down from 109,194 vehicles in the prior quarter.

For comparison, NIO Inc. (NYSE:NIO) delivered 83,465 vehicles during the quarter, up 98.3% year over year and down 33.1% sequentially.

Tesla Inc. (NASDAQ:TSLA) delivered 358,023 vehicles globally during the quarter, up 6% from a year earlier but down 14% from the previous quarter.

Li Auto Margins Contract As Costs Rise

Profitability weakened during the quarter as margins compressed.

Vehicle margin fell to 6.1% from 19.8% a year earlier, while gross margin declined to 7.9% from 20.5%. Chief Financial Officer Tie Li attributed the decline to Li i6 delivery-related measures, raw material price volatility and the company's model refresh cycle.

Adjusted operating loss was 2.8 billion yuan ($410.4 million), compared with adjusted operating income of 639.3 million yuan in the prior-year quarter.

Adjusted net loss totaled 2.1 billion yuan ($305.6 million), compared with adjusted net income of 1.0 billion yuan a year earlier.

Cash position was $13.7 billion as of March 31, 2026.

The company used 6.1 billion yuan ($883.0 million) in net operating cash flow during the quarter, compared with a 1.7 billion yuan outflow a year earlier, mainly due to lower customer cash receipts tied to reduced vehicle pricing. Li Auto generated 3.5 billion yuan in operating cash flow during the fourth quarter of 2025.

Free cash flow outflow totaled 7.4 billion yuan ($1.1 billion), compared with an outflow of 2.5 billion yuan a year earlier and positive free cash flow of 2.5 billion yuan in the previous quarter.

Retail Network And Charging Expansion Continue

As of March 31, 2026, Li Auto operated 517 retail stores across 160 cities. The company also maintained 552 service centers and authorized body and paint shops across 223 cities.

Its charging network included 4,057 supercharging stations with 22,439 charging stalls.

Li Auto Executives Highlight Product Refresh And AI Progress

Chairman and CEO Xiang Li said organizational and supply chain improvements helped the company regain the leading position among domestic auto brands in China's new energy vehicle market priced above 200,000 yuan during the first quarter.

Li said the newly launched Li L9 strengthens the company's flagship SUV lineup through upgraded technology and product performance. He also highlighted the deployment of the company's in-house MAHE M100 chip and MindVLA large model as a major technology milestone.

The company expects the upcoming Li L8 launch at the end of June to help address broader market demand while supporting its AI and premium service initiatives.

CFO Tie Li said profitability should gradually improve as deliveries recover, economies of scale return and the updated product lineup gains traction.

The company also said it remains committed to its $1 billion share repurchase program while maintaining a strong cash position for future strategic investments.

Outlook Misses Wall Street Expectations

For the second quarter of 2026, Li Auto expects revenue between 24.1 billion yuan and 25.4 billion yuan ($3.50 billion to $3.70 billion), representing a year-over-year decline of 20.2% to 16.0%. The guidance came in below the analyst consensus estimate of $4.17 billion.

The company expects vehicle deliveries between 95,000 and 100,000 units, representing a year-over-year decline of 14.5% to 10.0%.

Li Auto Stock Reaction

LI Price Action: Li Auto shares were down 4.88% at $15.01 at the time of publication on Thursday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

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