Li Auto Inc. (NASDAQ:LI) stock fell on Wednesday after the Chinese EV maker reported a steep decline in fiscal third-quarter 2025 results, weighed by lower deliveries, margin compression, and costs tied to a major vehicle recall.

Quarterly revenue fell 36.2% year over year to 27.4 billion Chinese yuan ($3.80 billion), though it came in slightly ahead of the analyst consensus estimate of $3.76 billion. Adjusted net earnings per ADS showed a loss of 0.36 yuan (5 cents), missing the Street’s expectation of a 4-cent gain.

Vehicle sales dropped 37.4% to $3.6 billion, driven primarily by weaker delivery volumes. Li Auto delivered 93,211 vehicles during the period, down 39.0% from 152,831 units a year earlier and below the 111,074 units delivered in the second quarter of 2025.

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