Mission Statement, Vision, & Core Values of Li Auto Inc. (LI)

Li Auto Inc.'s core principles-Mission: Create a Mobile Home, Create Happiness, and Vision: No. 1 choice for premium family users-are currently being stress-tested by a fiercely competitive market that is not waiting for anyone.

While the company secured a Q2 2025 net income of RMB 1.1 billion, the sharp decline in Q3 deliveries to just 93,211 units, a drop of 39.01% year-over-year, signals a major disconnect between their user-centric value and execution; the foundation is sound, but the near-term execution is defintely a stress test.

As a financial analyst, you have to ask: can a mission focused on 'happiness' sustain a stock when Q3 revenue forecasts are down as much as 42.1%, or is this the moment their Core Values of Value Creation and Growth must kick in to stabilize the business?

Li Auto Inc. (LI) Overview

You need a clear picture of Li Auto Inc.'s trajectory, especially as market dynamics shift in late 2025. The direct takeaway is this: Li Auto is a premium Chinese electric vehicle (EV) maker that pioneered the Extended-Range Electric Vehicle (EREV) segment, and while it is maintaining industry-leading profit margins, its near-term delivery growth is slowing due to intense competition and a strategic pivot to Battery Electric Vehicles (BEVs).

Founded in 2015 by Li Xiang, the company is headquartered in Beijing and started volume production in November 2019. Its core mission is simple and powerful: Create a Mobile Home, Create Happiness. This is why their product lineup focuses on large, family-oriented SUVs and MPVs, which are defintely practical for the US-style family road trip. The primary product line has historically been the L-series EREVs-the Li L9, L8, L7, and L6-which use a gasoline range extender to eliminate range anxiety. Plus, they've recently launched their first fully electric models, the Li MEGA MPV and the new Li i6 and Li i8 BEV SUVs. If you want to dive deeper into the company's foundation and strategy, check out Li Auto Inc. (LI): History, Ownership, Mission, How It Works & Makes Money.

As of October 31, 2025, Li Auto Inc.'s cumulative deliveries have reached a significant milestone of over 1,462,788 units. The company delivered 31,767 vehicles in October 2025 alone, demonstrating sustained high-volume sales, even with market headwinds. This is a business that scaled fast.

Latest Financial Performance and Market Realities

Looking at the latest available financial data, the company's performance in the first half of 2025 shows a mixed, but still profitable, picture. For the first quarter of 2025, Li Auto Inc. reported total revenues of RMB25.9 billion (approximately US$3.6 billion), with vehicle sales accounting for RMB24.7 billion (approximately US$3.4 billion). Here's the quick math: the gross margin remained strong at 20.5% in Q1 2025, which is a clear sign of premium pricing power and efficient manufacturing.

Still, the market is getting tougher. The second quarter of 2025 saw vehicle margins at a still-impressive 19.4%, but the company missed delivery expectations, reporting approximately 108,000 vehicles delivered. This is a slowdown from the pace that made them the first Chinese premium brand to cross 500,000 annual deliveries in 2024. For the third quarter of 2025, Wall Street analysts are expecting a revenue of around $3.71 billion, a sharp decline from the prior year's period, reflecting the impact of sector-wide price cuts and a competitive squeeze from rivals like BYD and Huawei-backed Aito.

• Q1 2025 Revenue: US$3.6 billion.
• Q2 2025 Vehicle Margin: 19.4%.
• October 2025 Deliveries: 31,767 units.

What this estimate hides is the strategic shift: Li Auto is investing heavily in its BEV platform and charging infrastructure, which is a necessary expense for long-term growth but impacts near-term profitability. You're seeing the cost of a major product transition play out in the financials.

A Leader in the Premium Family EV Segment

Li Auto Inc. is not just another EV company; it is a clear leader in a specific, high-value segment. The company has maintained a sustained leadership position in China's premium SUV market, specifically for vehicles priced at RMB200,000 and above. This focus on the family-oriented, large-format vehicle has been their core strength, allowing them to command higher vehicle margins than most of their Chinese EV startup peers.

Their success hinges on the EREV technology, which provided a perfect bridge for consumers moving from gasoline to electric, but the future is BEV. The strong order momentum for their new fully electric models, like the Li i6, which accumulated over 70,000 orders shortly after its late September 2025 debut, signals that their brand equity is translating to the pure-electric market. This ability to pivot while maintaining industry-leading margins is why Li Auto Inc. remains a key player to watch. They've built a solid base; now they have to execute the BEV transition to secure their future dominance.

Li Auto Inc. (LI) Mission Statement

For a company like Li Auto Inc., whose focus is squarely on the family user, the mission statement isn't just a plaque on the wall; it's the strategic compass. Their mission, Create a Mobile Home, Create Happiness, is profoundly simple, but it's the bedrock for every product decision, from vehicle design to their service network expansion. This statement guides their long-term goal of becoming the No. 1 choice for premium family users, which is a massive, and defintely profitable, market to own.

You need to see this mission as a filter for their capital allocation. When they spend on research and development (R&D) or build out their charging infrastructure, it must directly serve this core idea of a safe, comfortable, and convenient family experience. This focus is why they've been able to post strong financial results, even amidst a highly competitive new energy vehicle (NEV) market.

Core Component 1: User-Centricity

The first core component, User-Centricity, translates the mission's 'Mobile Home' concept into tangible product and service features. It means designing vehicles around real-life family scenarios, not just technical specifications. For example, their focus on Extended-Range Electric Vehicles (EREV) directly addresses the range anxiety that a family planning a long road trip would face, offering a combined range that removes that stress entirely.

This commitment extends to their physical footprint. As of September 30, 2025, Li Auto Inc. had expanded its service network to include 542 retail stores across 157 cities and 546 servicing centers in 225 cities across China. This network density is crucial. If you buy a family car, you expect service to be nearby and fast. Plus, the company is building out its high-power charging network, with 3,420 super charging stations equipped with 18,897 charging stalls by the end of Q3 2025, showing they are putting capital where the user need is greatest.

• Design vehicles for family comfort and safety.
• Expand service network to reduce user downtime.
• Address range anxiety with EREV and supercharging.

Core Component 2: Value Creation

Value Creation is the second core value, and it's where the 'Create Happiness' part of the mission meets the financial reality. For investors, this means generating superior returns; for customers, it means a high-quality product that justifies the premium price. The numbers show they are executing this well. In the second quarter of 2025, Li Auto Inc. reported total revenues of RMB30.2 billion (US$4.2 billion).

Here's the quick math: their vehicle margin-the profit they make on each car sold-was a healthy 19.4% in Q2 2025. This high margin, compared to many competitors, is a direct result of their focus on premium, family-focused SUVs like the Li L9 and Li L8, which command better pricing. To be fair, this value proposition is constantly tested. The November 2025 recall of the Mega MPV after a coolant leakage issue was a real-world risk, but the company's quick response, including employee terminations and a new supply pact for LiDAR technology, shows a concrete commitment to quality and value protection.

For deeper insights into Li Auto's financial health, you should be Exploring Li Auto Inc. (LI) Investor Profile: Who's Buying and Why?

Core Component 3: Sustainable Growth

The final pillar is Growth, which is the engine for a company operating in a rapidly changing industry. This isn't just about selling more cars; it's about expanding the product portfolio and market reach responsibly. Their cumulative deliveries reached over 1.43 million vehicles as of September 30, 2025, which demonstrates strong market acceptance of their core EREV models.

The company's strategy for sustainable growth involves a major push into Battery Electric Vehicles (BEVs) to complement their EREV lineup. They launched the Li i8, a six-seat battery electric family SUV, in July 2025, and the Li i6, a five-seat BEV, in September 2025. This product expansion is what will drive future revenue. While their Q3 2025 deliveries of 93,211 vehicles were solid, this new BEV lineup is a clear action to diversify and sustain growth beyond their initial EREV success, ensuring they remain relevant as the NEV market evolves.

Next Step: You should track the delivery numbers for the new Li i6 and Li i8 BEV models in Q4 2025 to gauge the market's acceptance of their product diversification strategy.

Li Auto Inc. (LI) Vision Statement

You're looking for the bedrock of Li Auto Inc.'s strategy, and that starts with their core philosophy. A company's mission and vision aren't just wall decorations; they map out where the capital is going. For Li Auto, the direct takeaway is this: they are laser-focused on the premium family user, translating that focus into high-margin, tech-forward vehicles and a rapidly expanding service ecosystem.

Their stated vision is clear: To become the No. 1 choice for premium family users. This isn't about volume at all costs; it's about dominating a lucrative segment. The numbers show this strategy is working. As of October 31, 2025, their cumulative deliveries hit an impressive 1,462,788 vehicles, demonstrating strong market acceptance for their family-centric approach.

Mission: Create a Mobile Home, Create Happiness

The mission statement, 'Create a Mobile Home, Create Happiness' (创造移动的家,创造幸福的家), is the engine driving their product design. It's an empathetic approach that moves beyond just transportation and into the realm of a lifestyle product. This isn't just marketing fluff; it's a design constraint that dictates everything from vehicle size to in-car technology.

The success of the Li MEGA, their all-electric Multi-Purpose Vehicle (MPV), is a defintely concrete example of this mission in action. It's designed as a high-tech family flagship, and it has already surpassed sales expectations, becoming the top seller in the MPV segment priced above RMB500,000. That's a clear signal that families are buying into the 'mobile home' concept.

Here's the quick math on their product focus translating to financial health: in the second quarter of 2025, Li Auto reported a vehicle margin of 19.4%. That's a strong margin for the competitive New Energy Vehicle (NEV) market, and it's a direct result of targeting the premium user who values the integrated family experience over a lower sticker price.

Core Value 1: User-Centric

A 'user-centric' value means constantly iterating based on what the customer needs, not just what the engineers want to build. For Li Auto, this translates into a relentless focus on solving range anxiety and enhancing the digital experience. Their Extended-Range Electric Vehicle (EREV) technology is the original solution to range anxiety, but their recent push into Battery Electric Vehicles (BEVs) shows they are adapting to changing user demands.

Their infrastructure build-out is another key action tied to this value. As of October 2025, they operate 551 retail stores and have deployed 3,508 supercharging stations with 19,417 charging stalls across China. That massive investment in convenience directly addresses user pain points.

• Opened 551 retail stores in 157 cities.
• Deployed 19,417 charging stalls for user convenience.
• Launched Li i6 after accumulating over 70,000 pre-orders.

Core Value 2: Value Creation

From an investor's perspective, 'Value Creation' means generating real profits and building a defensible moat. Li Auto achieves this by integrating proprietary technology that is hard to replicate. They concentrate in-house development on smart vehicle solutions, including their VLA driver-assist large model and 'Li Auto Intelligent Companion.'

This tech focus is designed to unlock high-margin, recurring software and services revenue, which will enhance net margins over the long term. In the second quarter of 2025 alone, the company generated total revenues of RMB30.2 billion (US$4.2 billion) and a net income of RMB1.1 billion (US$153.1 million). This shows a business model that is successfully translating its core value into tangible financial results.

If you want to dive deeper into the financial mechanics of this value creation, you should read Breaking Down Li Auto Inc. (LI) Financial Health: Key Insights for Investors.

Core Value 3: Growth

The 'Growth' value is about scaling the business, both geographically and through product line expansion. This isn't just about selling more of the same vehicle; it's about broadening the portfolio to capture a wider share of the premium family market. The launch of the pure electric Li i8 and Li i6 SUVs in 2025, alongside the existing Li L series EREVs, is a perfect example of this dual-platform strategy.

Plus, their international moves are starting to materialize. In October 2025, they opened their first international retail outlet in Uzbekistan, with two more scheduled for Kazakhstan in November 2025. This strategic entry into Central Asia signals the start of their global growth ambition, moving beyond their core Chinese market.

What this estimate hides is the intense capital expenditure (CapEx) required for this kind of rapid expansion, especially in building out charging infrastructure, but the goal is clear: to maintain the growth momentum seen in their Q2 2025 deliveries of 111,074 vehicles.

Finance: Track the Q3 2025 earnings release on November 26, 2025, for the next clear data point on international revenue contribution.

Li Auto Inc. (LI) Core Values

You're looking for the bedrock of Li Auto Inc.'s strategy, and honestly, it boils down to three core values: User-Centricity, Value Creation, and Growth. These aren't just posters on a wall; they are the engine driving their product and financial decisions, especially as they navigate the shift from Extended-Range Electric Vehicles (EREV) to Battery Electric Vehicles (BEV).

The company's mission-to Create a Mobile Home, Create Happiness-is the ultimate goal, but these three values are the tactical roadmap. They are what allowed Li Auto to deliver 111,074 vehicles in the second quarter of 2025 alone, even amid fierce market competition.

User-Centricity means placing the family user-their primary target-at the absolute heart of every design and service decision. It's a simple concept, but it's hard to execute at scale, especially when quality issues arise. This value is their insurance policy against customer churn.

You saw this commitment tested in November 2025 with the Mega MPV recall following a coolant leakage issue. Li Auto's response was swift and decisive: they implemented internal accountability measures, including employee terminations, which is a clear signal that process discipline trumps internal comfort.

Their focus on the customer experience is also evident in their infrastructure build-out. As of October 2025, they operated over 3,500 supercharging stations with approximately 19,417 charging stalls in China. That's a massive investment in convenience, addressing the range anxiety (fear of running out of battery) that plagues many EV owners.

• Rapidly expand charging network.
• Prioritize safety over speed.
• Open-source key software.

Plus, they became the first automaker to open-source their smart vehicle operating system, Li Halo OS, in Q1 2025. That move fosters community development and feedback, which is defintely a user-centric play.

Value Creation, for Li Auto, is about leveraging proprietary technology to deliver tangible benefits that justify a premium price point. This isn't just about selling a car; it's about selling a smarter, more capable platform.

The shift to Battery Electric Vehicles (BEV) is central to this value. The company launched the new Li i6, a five-seat BEV SUV, in September 2025, with the Li i8 planned for July 2025. These new models are designed to capture the high-margin software revenue stream that analysts are banking on.

Here's the quick math: the aggressive investment in proprietary intelligent driving systems, like the new LiDAR partnership with Hesai Technology, is expected to unlock high-margin, recurring software and services revenue. This technological focus is what drives their vehicle margin, which stood at a solid 19.4% in the second quarter of 2025. That margin is a direct measure of the value they create and capture.

For a deeper dive into the financial mechanics of their growth, you should check out Exploring Li Auto Inc. (LI) Investor Profile: Who's Buying and Why?

The third pillar, Growth, is a commitment to continuous expansion-in product, market, and financial performance. This is where the rubber meets the road for investors.

Li Auto's growth ambitions are clear: they initially targeted 700,000 vehicle sales for the full year 2025, a goal that was later cut but still shows their mindset. Despite market headwinds, their total revenues for the first half of 2025 reached RMB 56.1 billion (Q1: RMB 25.9 billion + Q2: RMB 30.2 billion). That's significant scale.

This growth isn't just domestic. The company is actively pursuing international expansion, having opened its first international retail outlet in Uzbekistan in October 2025, with two more planned for Kazakhstan in November. Domestically, their retail footprint expanded to 551 stores across 157 cities by the end of October 2025, ensuring they maintain market share in the premium SUV segment. Their strategy is to grow by expanding the product line and the geographic reach simultaneously. It's a high-risk, high-reward approach, but it's what you expect from a company with a market capitalization of approximately $19.92 billion in November 2025.