Li Xiang hat noch drei rettende Federn.

Every leading company in the industry must have experienced a "crisis situation" at least once. This crisis situation does not mean that the company is going bankrupt, but that the methodology that has led to its success so far suddenly stops working, and the path ahead becomes unclear for the first time. Li Auto is now at such a crossroads.

To understand Li Auto's "crisis situation", we first need to look at two honest sets of data.

The first set of data comes from Li Auto's second - quarter 2025 quarterly report. The quarterly revenue was 30.2 billion yuan, representing a year - on - year decline of 4.5%. The net profit was 1.1 billion yuan, a decline of 0.4% compared to the previous year. This shows that Li Auto's profitability is declining compared to itself in the previous year when it was still growing rapidly. Even more concerning is the cash - flow situation. In the second quarter, the cash flow used in operating activities was 3 billion yuan, and the free cash flow was minus 3.8 billion yuan, compared to minus 1.9 billion yuan in the same period of the previous year, indicating a deterioration of the loss.

In August 2025, Li Auto delivered 28,529 vehicles. In comparison, Nezha, XPeng, and NIO all delivered more vehicles than Li Auto in this month. Even Xiaomi, which recently entered the automotive industry, has maintained a monthly delivery of over 30,000 vehicles stably.

Looking at the long - term trend, Li Auto delivered 48,122 vehicles in August 2024. The delivery volume has decreased by 40% within a year. From its peak performance in 2024 when it delivered over 50,000 vehicles per month, it has now dropped to under 30,000 vehicles.

The situation is already difficult enough, but there are still two tough battles ahead for Li Xiang, the founder of Li Auto. The first battle is in the market for 5 - door, 6 - seat SUVs. In front is the LeDao L90, and behind is the Tesla Model Y L. Especially Tesla was not a direct competitor before because the Model Y was smaller than Li Auto's L8 and L9 models. But now Tesla has developed the Model Y L specifically for the Chinese market, which is also a 5 - door, 6 - seat family vehicle and has directly penetrated into Li Auto's core market area.

The second battle is in the field of pure electric mobility. If Li Auto can still build on its previous successes in the 5 - door, 6 - seat SUV segment, it is a newcomer in the field of pure electric mobility. Given established companies like BYD, Chery, and Geely, as well as newer brands like NIO and XPeng, which are already active in the electric vehicle market and are launching new models, it will be difficult for Li Auto to find its way through the market.

What should Li Auto do, which has over 10 billion yuan in cash? Where should it start?

There are always solutions to problems. Just as the Monkey King has three rescue feathers behind his head, Li Xiang also has three tricks up his sleeve to overcome the current crisis.

A

Li Auto's first rescue trick is the "price". More specifically, Li Auto must temporarily abandon the fixation on a high profit margin and offer lower prices to gain a larger market share.

This is especially true for the Li Auto i8, which will soon be launched in the entire market, and the pure - electric SUV i6, which was presented in September. These two models are Li Auto's perfect weapons to explore new markets and open up a second front in the market.

Li Auto should set aggressive prices for the L6 and the i6. For example, the price of the L6 should be lowered to under 200,000 yuan, and the i6 should also be offered at under 200,000 yuan. Although this would sacrifice some profit, it would bring several strategic advantages.

In the price segment of 200,000 yuan, there is currently no plug - in hybrid SUV like Li Auto that understands the needs of families so well. This is a huge gap in the market. Instead of competing in the "red ocean" between 200,000 and 350,000 yuan with competitors like AITO, Li Auto should rather move down to a new market layer and explore a new market by leveraging its proven product strength against competitors with unclear product differentiation.

For the i8, Li Auto cannot change the price in the short term because Li Auto's sales model is very unified, and the price on the official website is the same as the recommended price, without any interference factors. However, Li Auto can increase sales volume by offering additional benefits.

For example, it can offer a delivery maintenance allowance, that is, if the delivery is delayed, the customer will receive Li Auto points in the online store for each day the delivery is postponed. A lifetime warranty package would also be attractive because the maintenance costs for electric vehicle batteries are high. If Li Auto offers such a package, it would significantly increase customers' willingness to buy electric models. A reduction in loan interest rates would be practically equivalent to a price discount for customers who pay monthly installments.

A higher sales volume means more customer data, which is crucial for training AI models for autonomous driving and analyzing customer behavior. Currently, Li Auto has sold nearly 1.4 million vehicles. If it can exceed the mark of 2 million vehicles, the iteration speed and potential in the future competition for vehicle intelligence will be completely different.

The most important thing is to secure the market first and then talk about performance. In a period of rapid growth and restructuring in the industry, market share takes precedence over short - term profits. Market share is the ticket to the future; profit can wait until the market situation stabilizes. First, customers should be "captured" with low prices so that they can get to know Li Auto's products and services and develop a positive opinion and brand loyalty. As long as the customers are with you, there are countless ways to make money.

Pulling out the first "rescue feather" will be painful and will directly affect the profit figures in the report. But it is a crucial step to survive first and then grow.

B

If price is a tactical adjustment, then Li Auto's second rescue trick must be at the strategic and brand - related level. This trick is "market research", more specifically, the founder Li Xiang himself must appear more often and "promote" Li Auto.

In today's China, the automotive industry is not only a competition in technology and products but also in the personality of the founder and the ability to tell a brand story. A lively and brave founder can create brand awareness and customer satisfaction with his personal image that no million - euro advertising budget can achieve.

Let's look at some successful examples. Lei Jun of Xiaomi can turn an ordinary T - shirt into a best - selling item through a product presentation. Countless netizens write to him on Weibo, asking Xiaomi to produce sanitary napkins. Li Bin of NIO can personally participate in customer meetings where customers can "vent" all their problems with products and services, and he then calmly answers all questions. The growth in sales volume of Xiaomi and NIO is surely related to how often the two founders appear in the media.

Li Xiang himself naturally has a strong online presence. He is active on social media, speaks bluntly, and has clear opinions, which often gets him into the headlines. Before the presentation of the Li Auto MEGA, Li Xiang was very active on Weibo. He personally explained the products, interacted with customers, and even "discussed" with competitors, which attracted huge attention for Li Auto.

After the difficulties with the MEGA, Li Xiang has withdrawn a bit from the public eye. In my opinion, this is a waste of resources. In a period when the company is under sales pressure and the market has doubts, it most needs the voice of the founder.

Li Xiang should "devote himself" and fully stand for Li Auto's products and brand. The upcoming presentation of the i6 should not just be a normal product presentation. Li Xiang could personally explain the product concept of the i6 a month in advance through livestreams, short videos, and social media Q&A. He should talk about why Li Auto is producing such an electric SUV, what new problems it solves for family customers, and what considerations are behind the price.

He must turn the product logic behind the scenes into a story that he can directly share with customers. When customers see how a founder loves and presents a product like his own child, no professional manager or brand manager can convey the same trustworthiness and enthusiasm.

Furthermore, Li Xiang should integrate this type of market research with his personal image into Li Auto's brand identity. He should become a direct communication window for customers, just like Lei Jun and Li Bin. Whether it's good product suggestions or bad service experiences, customers should know that they can directly contact Li Xiang and get a response. This would create very strong brand loyalty.

The second "rescue trick" tests the founder's determination and attitude. Li Xiang must transform more from the role of "CEO Li Xiang" to the role of "Chief Product Manager and Brand Ambassador Li Xiang". He himself is Li Auto's most valuable marketing asset.

C

Li Auto's third rescue trick is to give itself a new "product label".

Li Auto's early success is largely due to the fact that it found an excellent label - "Refrigerator, TV, big sofa". These six words are simple, vivid, and directly meet the core requirements of Chinese family customers. They concretize the concepts of "comfort" and "family". For a long time, Li Auto was almost synonymous with the "No. 1 family vehicle".

But the effect of a label has a shelf - life. If all competitors in the industry install refrigerators, TVs, and big sofas in their SUVs, this label is no longer Li Auto's unique advantage but becomes the "standard equipment" of the entire category. If a label no longer has any special features, it also loses its meaning as brand protection.

Therefore, Li Auto urgently needs a new, more attractive, and harder - to - imitate label. This new label should shift from the previous emphasis on "functional comfort" to "perceived technology and luxury". Simply put, the customer should feel that with the same amount of money, they get the most visible and tangible technological value here.

How can this "value" be implemented? It can be approached from two levels.

The first aspect is to create a "unique" visual impression in the cockpit. Take the screens as an example. Li Auto's current screen arrangement is very functional, but in terms of form, it is no longer so impressive. Looking at competitors in the same price range, the Lincoln Navigator has a continuous all - around view screen, the Mercedes - Benz EQS has a hyperscreen over 1.4 meters wide, and the Cadillac Lyriq has a 33 - inch curved screen that looks very futuristic. These designs can give the customer a strong visual shock and the thought "This car is very high - end" when they open the door.

Li Auto can learn from this example and develop more unique screen concepts in future models. The most important thing is not the size of the screen but the innovation in form and the integration into the interior. It should create a technological atmosphere that needs no explanation and makes the car immediately memorable.

The second aspect is to create an "excessive" sense of ritual in functional details. Many "unnecessary" functions in traditional luxury brands are exactly the reason for the feeling of luxury. For example, there are car doors that can be automatically opened and closed with a push of a button. This function is not necessarily required for daily use, but it offers a sense of calmness and exclusivity.

For Li Auto's target group, this "excessive" fulfillment in details is exactly what they need to show their taste and distinguish themselves from ordinary family cars. If a car owner can point out this function to his friends, which is not often found in cars in this price range, he will get a strong sense of satisfaction that far exceeds the cost of this function. Li Auto can study such "ritual functions" and integrate them into its products.

In summary, the new label should transform Li Auto from a pure...