Company Overview Li Auto delivered major news on January 1st – exactly one week ago – announcing December 2025 deliveries of 44,246 vehicles that brought Q4 totals to 109,194 units and pushed cumulative deliveries past the milestone 1.5 million mark. The announcement carries particular weight as Piper Sandler characterized the results as “better-than-feared,” signaling that Li Auto is successfully navigating a challenging environment where Chinese EV makers face intense competition and year-over-year delivery comparisons have turned negative for some players.
What makes Li Auto’s positioning particularly compelling right now is the simultaneous announcement of international expansion beyond China for the first time. The company introduced its flagship models – Li L9, Li L7, and Li L6 – to Egypt, Kazakhstan, and Azerbaijan, establishing market presence across Central Asia, the Caucasus, and Africa. This geographic diversification comes as the company operates 548 retail stores across 159 Chinese cities, 561 servicing centers, and an impressive 3,907 supercharging stations with 21,651 charging stalls. Management expects monthly production capacity for the affordable Li i6 battery electric SUV to exceed 20,000 units by early 2026, targeting volume expansion at lower price points to capture broader market share.
Key Technical and Fundamental Drivers
Fresh Delivery Update → 1.5M Milestone Announced Last Week January 1st announcement (one week ago) showed December deliveries of 44,246 vehicles, Q4 total of 109,194 units, and cumulative deliveries surpassing 1.5 million – with Piper Sandler calling results “better-than-feared.”
International Expansion → First Markets Beyond China Li Auto entered three new international markets simultaneously – Egypt, Kazakhstan, and Azerbaijan – introducing flagship Li L9, L7, and L6 models to establish presence in Central Asia, Caucasus, and Africa.
Massive Infrastructure Network → 3,907 Charging Stations With 548 retail stores in 159 cities, 561 service centers in 224 cities, and 3,907 supercharging stations with 21,651 charging stalls across China, Li Auto operates one of the industry’s most extensive support networks.
Production Scaling → 20,000 Monthly Li i6 Capacity Management targets monthly production exceeding 20,000 units for the affordable Li i6 battery electric SUV by early 2026, positioning the company to compete aggressively in volume segments with lower price points.
New Product Launch → Li AI Glasses “Livis” The company officially launched Li AI glasses called Livis, receiving positive initial user feedback and demonstrating expansion beyond vehicles into complementary technology products for the smart mobility ecosystem.
Market Takeaway Li Auto’s January 1st delivery announcement carries significant strategic implications beyond the headline numbers. While December’s 44,246 deliveries represented a 24% year-over-year decline – reflecting broader challenges in China’s fiercely competitive EV market – the sequential Q4 improvement of 17.15% from Q3 and Piper Sandler’s “better-than-feared” assessment suggest the company is stabilizing after earlier quarterly pressures. The 1.5 million cumulative deliveries milestone achieved in just over six years of scaled production demonstrates Li Auto’s ability to execute at volume in the world’s largest EV market.
The international expansion announcement is particularly noteworthy as Li Auto becomes one of the first Chinese EV makers to establish meaningful presence outside China. While competitors like BYD have expanded globally, Li Auto’s focused entry into Egypt, Kazakhstan, and Azerbaijan suggests a strategic approach targeting emerging markets with growing vehicle demand and less established competition. This geographic diversification reduces reliance on the hyper-competitive Chinese market where price wars and oversupply have pressured margins across the industry.
Trading near $16.93 – roughly 49% below its 52-week high of $33.12 and close to 52-week lows around $16.11 – Li Auto’s valuation reflects significant pessimism about Chinese EV makers. However, the company’s focus on range-extended electric vehicles (combining battery power with a small gasoline engine for charging) differentiates its technology from pure battery EVs, addressing range anxiety that remains a barrier to adoption. With the Li i6 targeting 20,000 monthly production capacity at more affordable price points, Li Auto is positioning to compete across multiple market segments while maintaining its premium Li L-series lineup.
Analysts maintain varied views with Morgan Stanley recently reaffirming a “Buy” rating while Bernstein holds at “Hold,” suggesting the stock’s deep discount to historical levels may offer value for investors willing to navigate Chinese EV sector volatility. Traders should watch for Q4 2025 earnings release projected for February 19th, which will provide critical insights into whether delivery growth is translating into improved profitability as the company scales production and expands internationally.