Li Auto reported fourth-quarter revenue of RMB 44.3 billion ($6.1 billion), aligning with analysts’ expectations and within its previously guided range of RMB 43.2 billion to RMB 45.9 billion. This represents a 6.1% increase from a year earlier and a 3.3% rise from the third quarter of 2024, according to the company’s unaudited earnings report released on Thursday.
Vehicle sales revenue totaled RMB 42.6 billion for the quarter, up 5.6% year-on-year and 3.2% sequentially. The increase was driven by higher deliveries, though partially offset by lower average selling prices due to interest subsidies provided to customers. Li Auto delivered 158,696 vehicles during the period, falling short of its projected range of 160,000 to 170,000 units. Deliveries rose 20.4% year-on-year and 3.84% from the previous quarter.
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The company’s net income reached RMB 3.5 billion, marking a 25.3% increase from the third quarter but a 38.6% decline from the same period in 2023. On a non-GAAP basis, net income stood at RMB 4.0 billion, down 12% from a year earlier but up 4.9% from the prior quarter. Basic and diluted net income per ADS were RMB 3.52 and RMB 3.31, respectively, compared to RMB 5.72 and RMB 5.32 a year earlier.
Li Auto reported a gross margin of 20.3% for the fourth quarter, down from 23.5% in the same period last year and 21.5% in the third quarter of 2024. Vehicle margin declined to 19.7% from 22.7% a year earlier and 20.9% in the prior quarter. The company attributed the decline primarily to losses on purchase commitments and lower average selling prices due to interest subsidies.
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Research and development (R&D) expenses fell 31% year-on-year to RMB 2.4 billion, mainly due to lower product development costs and reduced employee compensation. Selling, general, and administrative (SG&A) expenses declined 5.9% from the previous year to RMB 3.1 billion, reflecting lower employee compensation costs after a performance-based award was recognized in the third quarter.
As of December 31, 2024, Li Auto held a cash position of RMB 112.8 billion. Looking ahead, the company expects first-quarter 2025 vehicle deliveries between 88,000 and 93,000 units, representing a year-on-year increase of 9.5% to 15.7% but falling below analysts’ forecasts of 130,914 units.
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Revenue guidance for the first quarter is set between RMB 23.4 billion and RMB 24.7 billion, marking a decline of 3.5% to 8.7% year-on-year and missing the expected RMB 38.37 billion.