Li Auto reported a 9.4% year-on-year increase in net income to RMB 646.6 million (approximately USD 89.8 million) for the first quarter of 2025, with revenue rising 1.1% to RMB 25.9 billion (USD 3.6 billion). Vehicle deliveries grew 15.5% year-on-year to 92,864 units. Despite this growth, the company experienced an 81.7% decline in net income compared to the previous quarter. Gross margin remained stable, and disciplined cost control contributed to strong profitability. Li Auto provided second-quarter vehicle delivery guidance of between 123,000 and 128,000 units, projecting year-on-year growth of 13.3% to 17.9%, although its revenue forecast fell short of investor expectations, leading to a decline in its stock price. The company plans to launch two new all-electric SUVs in the third quarter: the Li i8 in July and the Li i6 in September. Additionally, Li Auto indicated intentions to expand its lineup with budget-friendly models once SUV sales double. Analysts such as Citi have maintained a neutral rating on the stock with a price target of $34.30, citing near-term margin pressures but positive long-term prospects supported by a strong model pipeline and technological upgrades.