Li Auto has completed a new round of organizational restructuring as the Chinese electric vehicle manufacturer continues efforts to expand its artificial intelligence capabilities and develop embodied AI technologies.
According to a report by Chinese media outlet LatePost, the company implemented the changes on May 29, creating three new second-tier departments focused on embodied engineering, embodied interaction and embodied behavior.
The move forms part of Li Auto’s broader strategy to expand beyond automotive manufacturing and strengthen its position in AI-related technologies.
New Embodied AI Structure
Under the latest restructuring, the newly established embodied AI departments will operate alongside an independent autonomous driving division.
The three embodied AI teams will report to Zhan Kun, head of Li Auto’s foundation model department, who in turn reports to Chief Technology Officer Xie Yan.
The adjustment separates autonomous driving operations into a standalone department while expanding resources dedicated to AI systems capable of interacting with and operating in physical environments.
Continued Investment in Robotics
The latest organizational changes represent Li Auto’s second major restructuring related to AI and intelligent driving technologies this year.
In February, the company reorganized its smart intelligence division and established a dedicated humanoid robotics team.
According to LatePost, Li Auto’s robotics project, internally known as Nexus, has already developed an initial prototype for its first wheeled robotic product.
AI Strategy Beyond Vehicles
Li Auto founder, chairman and chief executive officer Li Xiang has repeatedly described artificial intelligence as a key strategic direction for the company.
Speaking earlier this month, Li said autonomous driving represents the first stage of the broader robotics industry, while humanoid robots are expected to become the next major area of development.
However, he noted that large-scale commercialization of general-purpose humanoid robots is still likely several years away.
Financial Pressures Remain
The company’s AI expansion comes as Li Auto faces a more challenging financial environment.
In the first quarter of 2026, Li Auto reported a net loss of 2.3 billion yuan (US$339 million), ending a period of profitability that had lasted several quarters.
Revenue for the quarter declined 11.4% year-on-year to 23 billion yuan.
The company attributed much of the earnings pressure to lower vehicle profitability.
Vehicle gross margin fell to 7.9% during the quarter, compared with 20.5% in the same period a year earlier.
The decline reflected intensified competition in China’s electric vehicle market, ongoing price reductions and shifts in the company’s product mix.
Delivery Outlook
Li Auto also reported negative free cash flow during the first quarter, highlighting increased pressure on liquidity as the company continues investing in future technologies.
For the second quarter, the automaker expects vehicle deliveries of between 95,000 and 100,000 units.
The forecast is viewed as relatively cautious compared with guidance issued by several domestic competitors, reflecting the company’s efforts to balance near-term operational performance with long-term investments in AI, autonomous driving and robotics technologies.
