Li Auto vs Mercedes-Benz: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

Li Auto Inc (2015.HK)

Q3 202617 Jun – 1 Oct 2026

▲2▼2

Li Auto hit by price war, margin collapse, and record loss

Intensifying competition and price war BYD's cheaper Great Tang SUV and Xiaomi's entry into extended-range SUVs ramped up competition, while an industry launch glut pressured Li Auto's sales and pricing. Domestic H1 sales fell 5% amid the price war.
This competitive pressure was a primary force behind Li Auto's weak sales and margin decline.
Margin collapse and record loss Q2 vehicle margins collapsed to 9.4% from 19.4%, producing a RMB1.7 billion net loss. June deliveries fell 15% year-over-year, and the stock dropped 17% to an all-time low.
This directly explains the sharp deterioration in profitability and the stock's steep decline.
August rebound and new models August deliveries rebounded 32% year-over-year, Q3 guidance reached 100,000 units, and new models—the Li L8, Li i9, and Li L6—plus a RMB2.65 billion battery investment support future growth.
These positive developments provided a counterweight to the negative pressures and supported a potential recovery.
Export demand as partial offset Export demand in the Middle East and Europe offers a partial counterweight to weak domestic sales, though profitability remains severely squeezed.
This highlights an external source of demand that partially offsets domestic weakness.

August 20261 Aug – 1 Oct 2026

▲2▼1

Li Auto: deliveries rebound but margins collapse on price war

August deliveries jump 32% year-over-year Li Auto delivered 32% more vehicles in August than a year earlier, and Q3 guidance points to up to 100,000 units. This shows demand is holding up despite fierce competition.
This is the key new positive demand signal for the period.
Q2 margins collapse to 9.4% and net loss of RMB1.7 billion Vehicle profit margin fell to 9.4% from 19.4% a year earlier, with a RMB1.7 billion net loss. Deliveries fell 11.5% and revenue dropped 15.1%, showing the price war is crushing profitability.
This is the main new negative financial result for the period.
New models and battery investment support future growth Li Auto launched the Li i9 flagship SUV with in-house chip and fast-charging tech, and the Li L6 topped 10,000 units. A RMB2.65 billion investment in Sunwoda's battery unit secures supply and cost control.
These are new strategic moves that could improve competitiveness and costs.
Domestic price war drags sales down 5% in H1 despite export strength China's brutal EV price war pushed domestic sales down 5% in the first half, but strong export demand and expansion into the Middle East and Europe offer a counterweight.
This captures the ongoing competitive pressure and the offsetting export opportunity.

Latest1 Aug – 1 Oct 2026

▲2▼1

Li Auto's Q2 loss and margin collapse overshadow new model launches

Q2 profit collapse: margins crushed, swing to loss Li Auto's Q2 2026 results showed deliveries down 11.5%, revenue down 15.1%, vehicle margin collapsing to 9.4% from 19.4%, and a net loss of RMB1.7 billion. This is a sharp deterioration in profitability, directly weighing on the stock.
This is the single biggest new negative force for the stock, showing the price war is now hitting profits hard.
New flagship Li i9 SUV launched with in-house tech Li Auto launched the Li i9, a six-seat flagship electric SUV starting at RMB369,800, featuring an 800V 5C fast-charging platform, proprietary motors, and the in-house MACH M100 chip. If it sells well, it could revive growth and margins.
This is the main new product bet that could offset the weak financials and drive future sales.
September deliveries 31,817; new Li L6 tops 10,000 Li Auto delivered 31,817 vehicles in September, with over 10,000 units of the new Li L6. It also launched the Li MEGA Home and Li i9 Home, and will debut the Li i6 in Europe at the Paris Motor Show in October. This shows demand is holding up.
Concrete delivery numbers and new model launches show the company is still selling cars and expanding its lineup.
July deliveries 30,468; August exports jump 33% Li Auto delivered 30,468 vehicles in July, a solid number. Meanwhile, China's EV exports rose 33% in August, showing strong overseas demand that could benefit Li Auto as it expands into Central Asia and Europe. But domestic competition remains fierce.
These data points show demand is not collapsing and overseas markets offer a growth outlet, but they are not enough to offset the profit hit.

10 Aug – 14 Sep 2026

▲3▼1

Li Auto's strong deliveries and battery bet offset China EV price war

China EV price war hits Li Auto's domestic sales China's EV market is in a brutal price war with oversupply and weak demand. Li Auto's domestic sales fell 5% in the first half, showing the whole industry is struggling. This pressures Li Auto's sales and profits, pushing the stock down.
Explains the main negative force on Li Auto's sales and profitability.
Q2 revenue beat and Q3 delivery guidance up to 100K Li Auto reported Q2 revenue above analyst estimates and guided Q3 deliveries up to 100,000 vehicles. This shows the company is selling more cars than expected, which supports the stock price.
Directly shows better-than-expected financial performance and future delivery outlook.
August deliveries jump 32% year-over-year Li Auto delivered 37,679 vehicles in August, up 32% from a year ago. This strong demand shows customers are buying its cars despite the tough market. It also plans new models and Middle East expansion, which could add more growth.
Confirms strong end-customer demand and product momentum.
Li Auto invests 2.65 billion yuan in battery maker Sunwoda Li Auto is investing 2.65 billion yuan to become the second-largest shareholder in Sunwoda's EV battery unit. This helps secure battery supply and control costs, which is good for future profits and the stock price.
Shows a strategic move to strengthen supply chain and cost control.

July 202617 Jun – 16 Jul 2026

▼5▲1

Li Auto hit by price war, margin collapse, and delivery decline

BYD's Great Tang SUV intensifies competition BYD launched the Great Tang SUV, a direct rival to Li Auto's L9, starting at 239,900 yuan with over 150,000 pre-orders. This undercuts Li Auto's premium pricing and pressures its market share in the high-end SUV segment.
New competitive threat directly targets Li Auto's key segment, likely hurting sales and pricing power.
Li Auto launches new Li L8 five-seat SUV Li Auto launched the all-new Li L8 five-seat flagship SUV, with deliveries starting soon. This expands its product lineup and could attract more customers, but it remains to be seen if it can offset broader demand weakness.
New product launch is a potential positive catalyst for future sales, though its impact is uncertain.
June deliveries fall 15% year-over-year Li Auto delivered 30,895 vehicles in June, down 14.8% from a year earlier and 7.4% from May. This indicates weakening demand and contrasts with rivals like Nio, which grew 62.9%.
Directly shows deteriorating sales, a key driver of the stock's decline.
Xiaomi enters extended-range SUV market Xiaomi unveiled its Sky Nomad extended-range SUV series, entering a category popularized by Li Auto. Xiaomi's brand strength and tech focus could lure customers away, adding to competitive pressures.
New competitor in Li Auto's core segment, threatening future market share.
Margin collapse and weak guidance drive stock down 17% Li Auto's vehicle gross margins plunged to 6.1% from 19.8%, and Q2 guidance points to a 10-14.5% delivery decline. The stock hit an all-time low, though analysts still see upside.
Summarizes the financial deterioration and market reaction, central to the stock's recent performance.
Industry-wide rapid product launches hurt demand sustainability Eight automakers held launch events on July 16, with new car models introduced at twice the rate of phones. This creates a 'new car effect death valley,' where demand fades quickly, causing supply chain volatility and asset impairments.
Highlights a structural industry challenge that pressures all automakers, including Li Auto.

17 Jun – 16 Jul 2026

▼5▲1

Li Auto hit by price war, margin collapse, and delivery decline

BYD's Great Tang SUV intensifies competition BYD launched the Great Tang SUV, a direct rival to Li Auto's L9, starting at 239,900 yuan with over 150,000 pre-orders. This undercuts Li Auto's premium pricing and pressures its market share in the high-end SUV segment.
New competitive threat directly targets Li Auto's key segment, likely hurting sales and pricing power.
Li Auto launches new Li L8 five-seat SUV Li Auto launched the all-new Li L8 five-seat flagship SUV, with deliveries starting soon. This expands its product lineup and could attract more customers, but it remains to be seen if it can offset broader demand weakness.
New product launch is a potential positive catalyst for future sales, though its impact is uncertain.
June deliveries fall 15% year-over-year Li Auto delivered 30,895 vehicles in June, down 14.8% from a year earlier and 7.4% from May. This indicates weakening demand and contrasts with rivals like Nio, which grew 62.9%.
Directly shows deteriorating sales, a key driver of the stock's decline.
Xiaomi enters extended-range SUV market Xiaomi unveiled its Sky Nomad extended-range SUV series, entering a category popularized by Li Auto. Xiaomi's brand strength and tech focus could lure customers away, adding to competitive pressures.
New competitor in Li Auto's core segment, threatening future market share.
Margin collapse and weak guidance drive stock down 17% Li Auto's vehicle gross margins plunged to 6.1% from 19.8%, and Q2 guidance points to a 10-14.5% delivery decline. The stock hit an all-time low, though analysts still see upside.
Summarizes the financial deterioration and market reaction, central to the stock's recent performance.
Industry-wide rapid product launches hurt demand sustainability Eight automakers held launch events on July 16, with new car models introduced at twice the rate of phones. This creates a 'new car effect death valley,' where demand fades quickly, causing supply chain volatility and asset impairments.
Highlights a structural industry challenge that pressures all automakers, including Li Auto.

Mercedes-Benz Group AG (MBG.XETRA)

Q3 202611 Jul – 9 Oct 2026

▼3▲1

Mercedes Q3: Profit Beat, EV Surge Offset by China Collapse and Outlook Cut

Q2 Profit Beat and EV Sales Surge Q2 net profit rose to €1.065 billion, beating expectations, while EV sales jumped 52% to 78,100 units. US sales grew 6% and Europe 5%, showing strength outside China.
This is new positive financial and sales data that directly supports the stock price.
China Sales Collapse Worsens China sales fell 30% in Q2 and 31% in Q3, with only 1,153 first-half sales. This severe decline in a key market drags on revenue and profits, pressuring the stock.
China weakness is a major negative driver, and the Q3 figure is new information.
2026 Outlook Cut Below 2025 Levels Mercedes cut its 2026 outlook below 2025 levels, signaling management expects weaker performance ahead. This reduces investor confidence and weighs on the stock price.
The outlook cut is a new negative event that directly affects future earnings expectations.
US Senate Bill Threatens Connected-Vehicle Sales Ban A US Senate bill threatens a connected-vehicle sales ban from 2030 due to Chinese ownership near 20%. This regulatory risk could limit future US sales and adds uncertainty.
This is a new regulatory threat that could impact Mercedes' US business and stock sentiment.

August 202611 Jul – 9 Oct 2026

▲3▼1

China slump deepens, but Europe, US and EV sales offer offsets

China sales collapse worsens Mercedes' China sales fell 31% in Q3, after a 30-41% drop in Q2, as weak demand and fierce EV price competition hit the market. China is a huge profit source, so this directly drags on earnings and keeps the stock under pressure.
This is the single biggest force behind the stock's weakness and the core of the period's news.
Europe and US sales grow, EVs jump Q3 sales rose 6% in the US and 5% in Europe, and group battery-electric vehicle sales jumped 52% to 78,100 units. This shows the China weakness is partly offset elsewhere and that Mercedes' EV push is gaining real traction.
It is the main counterweight to the China collapse and shows where growth is coming from.
New CLA EV gets strong reviews A test drive of the new CLA 250+ electric sedan praised its 380-mile range, luxury feel and $45,000 starting price, positioning it as a strong rival to Tesla's Model 3. Good reviews support future demand for Mercedes' EVs.
Product momentum is a forward-looking driver of demand and brand strength.
Diesel lawsuit win and charging deal A UK court rejected all defeat-device claims against Mercedes, removing a legal overhang. Separately, EU approval of the Ionchi charging joint venture with BMW and Seres strengthens Mercedes' EV charging network in China.
Both reduce risk and support the EV strategy, helping investor confidence.

Latest11 Jul – 9 Oct 2026

▲3▼1

China slump deepens, but Europe, US and EV sales offer offsets

China sales collapse worsens Mercedes' China sales fell 31% in Q3, after a 30-41% drop in Q2, as weak demand and fierce EV price competition hit the market. China is a huge profit source, so this directly drags on earnings and keeps the stock under pressure.
This is the single biggest force behind the stock's weakness and the core of the period's news.
Europe and US sales grow, EVs jump Q3 sales rose 6% in the US and 5% in Europe, and group battery-electric vehicle sales jumped 52% to 78,100 units. This shows the China weakness is partly offset elsewhere and that Mercedes' EV push is gaining real traction.
It is the main counterweight to the China collapse and shows where growth is coming from.
New CLA EV gets strong reviews A test drive of the new CLA 250+ electric sedan praised its 380-mile range, luxury feel and $45,000 starting price, positioning it as a strong rival to Tesla's Model 3. Good reviews support future demand for Mercedes' EVs.
Product momentum is a forward-looking driver of demand and brand strength.
Diesel lawsuit win and charging deal A UK court rejected all defeat-device claims against Mercedes, removing a legal overhang. Separately, EU approval of the Ionchi charging joint venture with BMW and Seres strengthens Mercedes' EV charging network in China.
Both reduce risk and support the EV strategy, helping investor confidence.

September 202610 Aug – 1 Oct 2026

▲2▼2

China collapse forces sales warning, but tech deals and analyst support lift Mercedes

China sales collapse Mercedes sold only 1,153 cars in China in the first half of 2026, a tiny fraction of rivals like Xiaomi. Weak Chinese consumption and brutal EV price competition are crushing demand, directly hurting revenue and profits.
This is the core reason Mercedes is under pressure and the main negative force on the stock.
2026 sales outlook cut Mercedes lowered its 2026 sales forecast, now expecting full-year sales slightly below 2025, blaming weak China where the market fell about 20% in Q2. This confirms the downturn is not temporary and weighs on the stock.
A formal guidance cut is a direct, new negative signal for investors.
Wayve production deal for self-driving AI Mercedes signed a definitive production agreement with Wayve to put its AI Driver technology into future cars within two years, integrated with Mercedes' own software and hardware. This positions Mercedes as a leader in automated driving, supporting future demand.
A concrete production deal shows Mercedes is advancing in key technology, a positive long-term driver.
Morgan Stanley keeps Mercedes as top pick Morgan Stanley maintained an Overweight rating on Mercedes, raised its target to €59, and kept it as the preferred stock in the sector, saying the margin bottom is behind us. This boosts investor confidence and supports the share price.
Analyst support and a raised target directly influence investor sentiment and buying.

10 Aug – 1 Oct 2026

▲2▼2

China collapse forces sales warning, but tech deals and analyst support lift Mercedes

China sales collapse Mercedes sold only 1,153 cars in China in the first half of 2026, a tiny fraction of rivals like Xiaomi. Weak Chinese consumption and brutal EV price competition are crushing demand, directly hurting revenue and profits.
This is the core reason Mercedes is under pressure and the main negative force on the stock.
2026 sales outlook cut Mercedes lowered its 2026 sales forecast, now expecting full-year sales slightly below 2025, blaming weak China where the market fell about 20% in Q2. This confirms the downturn is not temporary and weighs on the stock.
A formal guidance cut is a direct, new negative signal for investors.
Wayve production deal for self-driving AI Mercedes signed a definitive production agreement with Wayve to put its AI Driver technology into future cars within two years, integrated with Mercedes' own software and hardware. This positions Mercedes as a leader in automated driving, supporting future demand.
A concrete production deal shows Mercedes is advancing in key technology, a positive long-term driver.
Morgan Stanley keeps Mercedes as top pick Morgan Stanley maintained an Overweight rating on Mercedes, raised its target to €59, and kept it as the preferred stock in the sector, saying the margin bottom is behind us. This boosts investor confidence and supports the share price.
Analyst support and a raised target directly influence investor sentiment and buying.

July 202613 Jul – 29 Jul 2026

▲2▼2

Mercedes Q2 Profit Rises, But US Ban Risk and China Slump Loom

US sales ban risk over Chinese ownership A US Senate bill could ban Mercedes from selling connected vehicles in the US from 2030 because Chinese investors hold nearly 20% of its shares, above the proposed 15% limit. The CEO pledged to defend the US business, but the threat creates uncertainty and could hurt future sales in a key market.
This is a major new regulatory risk that could directly threaten Mercedes' US sales and profits.
Q2 profit beats expectations Mercedes reported Q2 net profit of €1.065 billion, up from €915 million a year earlier, and adjusted return on sales beat analyst expectations. The stock rose on the results, showing the company is managing costs and pricing better than feared despite weak revenue.
The earnings beat is a new positive catalyst that lifted the stock and shows underlying profitability.
China competition is a new reality The CEO said intense price competition in China will continue for years, with Chinese brands entering the luxury segment. Mercedes' China sales fell 30% in Q2, and more cost cuts are planned. This persistent pressure weighs on revenue and profits, keeping the stock under pressure.
This confirms a structural challenge that directly impacts Mercedes' largest market and long-term earnings.
EV demand grows in Germany and Hungary plant expands German EV registrations jumped 48% in the first half, with Mercedes contributing 26,000 units. Mercedes also completed a €1 billion expansion of its Hungary plant to build electric models. These support the company's electric transition and future competitiveness.
These developments show progress in EVs and manufacturing efficiency, which are key to future growth.

13 Jul – 29 Jul 2026

▲2▼2

Mercedes Q2 Profit Rises, But US Ban Risk and China Slump Loom

US sales ban risk over Chinese ownership A US Senate bill could ban Mercedes from selling connected vehicles in the US from 2030 because Chinese investors hold nearly 20% of its shares, above the proposed 15% limit. The CEO pledged to defend the US business, but the threat creates uncertainty and could hurt future sales in a key market.
This is a major new regulatory risk that could directly threaten Mercedes' US sales and profits.
Q2 profit beats expectations Mercedes reported Q2 net profit of €1.065 billion, up from €915 million a year earlier, and adjusted return on sales beat analyst expectations. The stock rose on the results, showing the company is managing costs and pricing better than feared despite weak revenue.
The earnings beat is a new positive catalyst that lifted the stock and shows underlying profitability.
China competition is a new reality The CEO said intense price competition in China will continue for years, with Chinese brands entering the luxury segment. Mercedes' China sales fell 30% in Q2, and more cost cuts are planned. This persistent pressure weighs on revenue and profits, keeping the stock under pressure.
This confirms a structural challenge that directly impacts Mercedes' largest market and long-term earnings.
EV demand grows in Germany and Hungary plant expands German EV registrations jumped 48% in the first half, with Mercedes contributing 26,000 units. Mercedes also completed a €1 billion expansion of its Hungary plant to build electric models. These support the company's electric transition and future competitiveness.
These developments show progress in EVs and manufacturing efficiency, which are key to future growth.

Q2 202617 Jun – 10 Jul 2026

▲3▼1

China Sales Plunge and Cost Cuts Define Mercedes-Benz's Struggle

China Sales Collapse Over 30% in Q2 Mercedes-Benz's China sales fell more than 30% in Q2 2026, with global sales down 8%. This reflects intensifying competition from local brands and shrinking EV subsidies, directly hurting revenue and profits. The stock faces pressure as China is a key market for premium cars.
This is the most direct and severe demand shock for Mercedes-Benz, explaining the recent price weakness.
Deep Cost Cuts and AI Adoption Target 70% Mercedes-Benz is deepening cost cuts and aiming for 70% AI adoption across its workforce to lower unit costs and protect margins. This should improve profitability and competitiveness, supporting the stock price by addressing margin pressure from weak demand and competition.
This is a new company-specific initiative that directly counters margin pressure and could lift earnings.
UK Car Finance Redress Scheme Paused The UK tribunal paused the FCA's £9.1 billion car finance compensation scheme, delaying potential payouts. Mercedes-Benz's financial services arm is challenging the rules, so this reduces near-term liability and uncertainty, a positive for the stock as it removes a financial overhang.
This regulatory development lowers a significant potential cost and uncertainty for Mercedes-Benz.
Dieselgate Claim Largely Dismissed The High Court in London largely dismissed a multibillion-pound emissions cheating claim against Mercedes-Benz and others. This removes a major legal overhang and potential damages, boosting investor confidence and supporting the stock price by reducing regulatory risk.
This legal victory eliminates a large tail risk and is a clear positive for the stock.

June 202617 Jun – 10 Jul 2026

▲3▼1

China Sales Plunge and Cost Cuts Define Mercedes-Benz's Struggle

China Sales Collapse Over 30% in Q2 Mercedes-Benz's China sales fell more than 30% in Q2 2026, with global sales down 8%. This reflects intensifying competition from local brands and shrinking EV subsidies, directly hurting revenue and profits. The stock faces pressure as China is a key market for premium cars.
This is the most direct and severe demand shock for Mercedes-Benz, explaining the recent price weakness.
Deep Cost Cuts and AI Adoption Target 70% Mercedes-Benz is deepening cost cuts and aiming for 70% AI adoption across its workforce to lower unit costs and protect margins. This should improve profitability and competitiveness, supporting the stock price by addressing margin pressure from weak demand and competition.
This is a new company-specific initiative that directly counters margin pressure and could lift earnings.
UK Car Finance Redress Scheme Paused The UK tribunal paused the FCA's £9.1 billion car finance compensation scheme, delaying potential payouts. Mercedes-Benz's financial services arm is challenging the rules, so this reduces near-term liability and uncertainty, a positive for the stock as it removes a financial overhang.
This regulatory development lowers a significant potential cost and uncertainty for Mercedes-Benz.
Dieselgate Claim Largely Dismissed The High Court in London largely dismissed a multibillion-pound emissions cheating claim against Mercedes-Benz and others. This removes a major legal overhang and potential damages, boosting investor confidence and supporting the stock price by reducing regulatory risk.
This legal victory eliminates a large tail risk and is a clear positive for the stock.

17 Jun – 10 Jul 2026

▲3▼1

China Sales Plunge and Cost Cuts Define Mercedes-Benz's Struggle

China Sales Collapse Over 30% in Q2 Mercedes-Benz's China sales fell more than 30% in Q2 2026, with global sales down 8%. This reflects intensifying competition from local brands and shrinking EV subsidies, directly hurting revenue and profits. The stock faces pressure as China is a key market for premium cars.
This is the most direct and severe demand shock for Mercedes-Benz, explaining the recent price weakness.
Deep Cost Cuts and AI Adoption Target 70% Mercedes-Benz is deepening cost cuts and aiming for 70% AI adoption across its workforce to lower unit costs and protect margins. This should improve profitability and competitiveness, supporting the stock price by addressing margin pressure from weak demand and competition.
This is a new company-specific initiative that directly counters margin pressure and could lift earnings.
UK Car Finance Redress Scheme Paused The UK tribunal paused the FCA's £9.1 billion car finance compensation scheme, delaying potential payouts. Mercedes-Benz's financial services arm is challenging the rules, so this reduces near-term liability and uncertainty, a positive for the stock as it removes a financial overhang.
This regulatory development lowers a significant potential cost and uncertainty for Mercedes-Benz.
Dieselgate Claim Largely Dismissed The High Court in London largely dismissed a multibillion-pound emissions cheating claim against Mercedes-Benz and others. This removes a major legal overhang and potential damages, boosting investor confidence and supporting the stock price by reducing regulatory risk.
This legal victory eliminates a large tail risk and is a clear positive for the stock.