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Li Auto vs Ferrari NV: why the prices moved differently

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

Li Auto Inc (2015.HK)

Q3 2026
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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 2026
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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.

Latest
▲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.

▲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 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.

▼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.

Ferrari NV (RACE)

Q3 2026
▲2▼1

Ferrari's EV launch and raised guidance offset China weakness

  • Luce EV demand exceeds expectations Ferrari's new electric vehicle, the Luce, hit its annual sales target of about 500 units in under two months, with orders now stretching into late 2027. A one-off Luce also sold for a record $40 million, highlighting strong demand for Ferrari's first EV.

    This shows a major new product driving demand and revenue growth.

  • Raised 2026 guidance on strong Q2 results Ferrari reported Q2 revenue up 8% and operating profit up 10%, leading management to raise full-year 2026 revenue guidance to €7.60 billion. High-margin personalizations, share buybacks, and a new Rakuten partnership also supported results.

    This reflects improving financial performance and confidence in future growth.

  • China remains a headwind Weakening consumer demand in China and a shift toward cheaper domestic brands reduced Ferrari's sales there, though less sharply than for mass-premium rivals. This could cap gains if the trend worsens.

    This is a key risk that may limit Ferrari's overall growth.

August 2026
▲4

Ferrari's Buybacks, Record EV Sale, and Raised Guidance Drive Gains

  • Record $40M Electric Supercar Sale Signals Strong Demand Ferrari's one-of-one Luce electric vehicle sold for $40 million, a record for a new car, showing the brand can command extreme exclusivity even in its first EV. This supports pricing power and future demand, pushing the stock up.

    Demonstrates Ferrari's ability to monetize its electric transition and maintain ultra-premium pricing.

  • Q2 Beat and Raised 2026 Guidance on High-Margin Personalizations Ferrari's Q2 revenue rose 8% and operating profit 10%, beating estimates, with raised 2026 revenue guidance to €7.60 billion. High-margin personalizations and a full 2027 order book signal durable earnings growth, lifting the stock.

    Directly shows financial outperformance and forward demand visibility, key drivers of the stock.

  • Ongoing Share Buybacks Return Capital and Support Price Ferrari continued its multi-year buyback program, repurchasing shares across multiple tranches. This reduces share count and signals confidence, typically supporting the stock price by returning cash to shareholders.

    Buybacks are a consistent capital return mechanism that supports the stock and reflects management confidence.

  • Rakuten Partnership Expands Brand Engagement Ferrari signed a partnership with Rakuten effective 2027, though terms are undisclosed. The deal could boost brand reach and commercial activities, especially in Asia, supporting future demand and revenue.

    New partnership may enhance Ferrari's global brand and customer engagement, a potential growth driver.

Latest
▲4

Ferrari's Buybacks, Record EV Sale, and Raised Guidance Drive Gains

  • Record $40M Electric Supercar Sale Signals Strong Demand Ferrari's one-of-one Luce electric vehicle sold for $40 million, a record for a new car, showing the brand can command extreme exclusivity even in its first EV. This supports pricing power and future demand, pushing the stock up.

    Demonstrates Ferrari's ability to monetize its electric transition and maintain ultra-premium pricing.

  • Q2 Beat and Raised 2026 Guidance on High-Margin Personalizations Ferrari's Q2 revenue rose 8% and operating profit 10%, beating estimates, with raised 2026 revenue guidance to €7.60 billion. High-margin personalizations and a full 2027 order book signal durable earnings growth, lifting the stock.

    Directly shows financial outperformance and forward demand visibility, key drivers of the stock.

  • Ongoing Share Buybacks Return Capital and Support Price Ferrari continued its multi-year buyback program, repurchasing shares across multiple tranches. This reduces share count and signals confidence, typically supporting the stock price by returning cash to shareholders.

    Buybacks are a consistent capital return mechanism that supports the stock and reflects management confidence.

  • Rakuten Partnership Expands Brand Engagement Ferrari signed a partnership with Rakuten effective 2027, though terms are undisclosed. The deal could boost brand reach and commercial activities, especially in Asia, supporting future demand and revenue.

    New partnership may enhance Ferrari's global brand and customer engagement, a potential growth driver.

July 2026
▲2▼1

Ferrari's EV backlash fades as demand and profits surge

  • Luce EV demand defies design criticism Ferrari's first electric car, the Luce, hit its annual sales target of about 500 units in under two months, with China's initial allocation selling out. The order book now stretches to late 2027. Strong demand pushes RACE up because it shows the EV is winning buyers despite early criticism.

    This is the clearest new evidence that the EV launch is commercially successful, directly lifting demand expectations.

  • Ferrari raises full-year guidance after Q2 beat Ferrari beat second-quarter revenue and earnings estimates and raised its full-year outlook for revenue, profit, and cash flow. The order book extends through all of 2027. Higher guidance signals the business is stronger than expected, which supports a higher stock price.

    Guidance raises are a direct, fundamental driver of the stock and show management's confidence in future profits.

  • China consumer weakness hits luxury autos European luxury automakers are seeing weaker demand in China as consumers shift to cheaper domestic brands. Ferrari's China sales have fallen, though less sharply than mass-premium car brands. This is a real headwind that could cap RACE's gains, especially if the trend worsens.

    It is the main counterweight in the period, showing a risk to demand that investors should weigh.

▲2▼1

Ferrari's EV backlash fades as demand and profits surge

  • Luce EV demand defies design criticism Ferrari's first electric car, the Luce, hit its annual sales target of about 500 units in under two months, with China's initial allocation selling out. The order book now stretches to late 2027. Strong demand pushes RACE up because it shows the EV is winning buyers despite early criticism.

    This is the clearest new evidence that the EV launch is commercially successful, directly lifting demand expectations.

  • Ferrari raises full-year guidance after Q2 beat Ferrari beat second-quarter revenue and earnings estimates and raised its full-year outlook for revenue, profit, and cash flow. The order book extends through all of 2027. Higher guidance signals the business is stronger than expected, which supports a higher stock price.

    Guidance raises are a direct, fundamental driver of the stock and show management's confidence in future profits.

  • China consumer weakness hits luxury autos European luxury automakers are seeing weaker demand in China as consumers shift to cheaper domestic brands. Ferrari's China sales have fallen, though less sharply than mass-premium car brands. This is a real headwind that could cap RACE's gains, especially if the trend worsens.

    It is the main counterweight in the period, showing a risk to demand that investors should weigh.