Li Auto (LI) Q1 FY26 earnings call: guidance and Q&A

Inquiring about the L9's order performance, production ramp-up, and its expected contribution to Q2 deliveries.

The L9 Livis accounts for over 90% of orders, demonstrating strong demand above RMB 500k. Production capacity for L9/L8 is flexible, with May/June ramp-up to 4,000-5,000 units/month. Supply constraints exist for two-tone body color and unique parts. Expects ~8,000 L9 deliveries in Q2, with Q3 reaching previous generation levels.

“The top-selling lived version accounts for over 90% of all orders and the already fully loaded Ultra version accounts for the other less than 10%, which reflects the customer recognition of our latest advanced technology and the willingness to pay for features and performance and which also showcased our steady foothold in the market above RMB 500,000, which is a very positive trend for the brand.”

asked by Tim Hsiao · answered by Xiang Li

Asking about Q2 and full-year profitability, the impact of raw material costs, and specific gross margin targets for L9 and other models.

Q1 gross margin was impacted by model refresh and higher i6/L6 mix. Expects Q2 gross margin to recover to about 10% with the L9 launch. Full-year expects continued improvement as the refresh cycle completes. Priority is the successful refresh of the L series and EV portfolio.

“However, with the launch and delivery for all new L9, we expect our gross margin to recover about 10% in the second quarter.”

asked by Tim Hsiao · answered by Tie Li

Seeking details on the performance improvements and cost benefits of the M100 chip and the company's ADAS development roadmap.

ADAS 9.0 with the M100 chip shows significant improvement in complex scenarios with human-like control. The new platform allows better data, compute, and algorithms. The M100 chip delivers 3x computing power at half the cost (6x effective power). The goal is to match Tesla's FSDB 14 in the US in H2 this year. Future direction involves scaling input data, improving cognitive capabilities, and optimizing execution.

“Our goal is to match the performance of Tesla's FSDB 14 in the United States in the second half of this year. The higher performance AI inference system built around M100 chips give us a strong foundation to make this happen.”

asked by Unknown Analyst · answered by Unknown Executive

Asking for quantitative and qualitative assessment of the store partner program's effect on sales, efficiency, and employee performance.

The program unlocked the potential of frontline sales, shifting managers to business operators focused on ROI and long-term user cultivation. It increased the stability of core management. Despite Q1 being a low season, stores beat monthly sales targets, cleared L Series inventory, and increased user satisfaction. Expects continued improvement in operational efficiency.

“On average, each of our stores have all beaten their monthly sales target -- we have also successfully cleared the inventory for the previous generation L Series and also significantly increased user satisfaction.”

asked by Unknown Analyst · answered by Unknown Executive

Requesting information about the new L8 model.

The new L8 will be a flagship 5-seater, complementing the L9. It was registered with MIIT in April 2026 and is launching in June 2026. It features larger dimensions, improved rear passenger space, and the same 5.5-liter 1.5-liter turbocharge range extender and 72.7 kWh 5C battery as the L9. It will offer two-tone body color and electric running board options.

“The car will feature a 5-seat configuration with a rare passenger space significantly improved and overall riding experience also much improved. On the powertrain front, the car will also feature our in-house developed 5.5-liter 1.5-liter turbocharge range extender system with a 72.7 kilowatt hour 5C large capacity batteries, which is exactly the same as the one seen on the L9.”

asked by Tina Hou · answered by Unknown Executive

Seeking management's perspective on AI competition and its impact on the automotive industry.

Mid-to-high-end car competition will be 'body AI' driven by integrated chips and large foundational models. In-house chips create a strong moat, making replication difficult due to vertical integration. It took 4 years to bring chips to production, emphasizing the long-term technological barrier.

“In our view, the competition in the mid- to high-end car vehicle segment over the next 3 to 5 years, will really be a competition of a body AI. The highest technical barrier and the core determinant of the company's long-term success and comparison business will be a deeply integrated chip and large foundational model.”

asked by Tina Hou · answered by Xiang Li

Asking about the company's view and plans for humanoid robots.

Humanoid robots are seen as future standardized labor for factories, stores, and users. Any company needing human labor will eventually use robots. Full-scale development, deployment, and commercialization of humanoid robots will take more than 3 years due to unresolved technological challenges.

“So from a time standpoint, -- my belief is that for humanoid robots to reach full-scale development, deployment and commercialization to a point, just like where we got to with electric vehicles, between 2010 and 2015. To get to that point, it takes -- will still take more than 3 years because in every specific area, the technological path has not converged and there are many problems that remain to be solved.”

asked by Jing Chang · answered by Xiang Li

Requesting details on Li Auto's internationalization strategy, target regions, product pipelines, and expected contribution.

Pursuing a paced internationalization strategy, adapting market entry models. Signed contracts with Saudi Arabia and UAE distributors, entering Middle East/Central Asia in Q3 with L Series. Gradually entering Southeast Asia (China, Cambodia, Lao, Myanmar) from May. All-electric VI6 for Europe in H2. RHD Li Mega for key Asia Pacific markets (Hong Kong, Singapore) by year-end. All upcoming models will incorporate overseas regulatory compliance.

“We have also officially signed contracts with Saudi Arabia and UAE distributors. In the Middle East and Middle Asia market, Central Asia market, we will be taking our L Series, the range extender product line as the main product offer there.”

asked by Jing Chang · answered by Xiang Li