Li Auto Inc. (NASDAQ:LI) shares fell Thursday after the Chinese electric vehicle maker reported sharply weaker fiscal fourth-quarter 2025 results, reflecting lower deliveries, shrinking margins and costs linked to the recall of the Li MEGA in the third quarter of 2025.

Revenue And Deliveries Decline In Fourth Quarter

Quarterly revenue declined 35.0% year over year to 28.8 billion Chinese yuan ($4.11 billion), missing the analyst consensus estimate of $4.28 billion.

Adjusted net earnings were 0.25 yuan per American depositary share (4 cents), below the Street's expectation of 5 cents.

Vehicle sales fell 36.1% to $3.9 billion, primarily due to weaker delivery volumes.

Li Auto delivered 109,194 vehicles during the quarter, down 31.2% from 158,696 units a year earlier, though above the 93,211 units delivered in the third quarter of 2025.

For comparison, Nio Inc. (NYSE:NIO) reported quarterly deliveries of 124,807 vehicles, rising 71.7% year over year and 43.3% quarter over quarter. Tesla Inc. (NASDAQ:TSLA) delivered a record 418,227 vehicles globally in the quarter, although that figure declined 16% from a year earlier.

Margins Compress As Recall Costs Weigh

Profitability also weakened during the quarter.

Vehicle margin contracted to 16.8% from 19.7% a ...