Li Auto Inc. posted a second-quarter 2026 net loss of RMB1.705 billion (about US$254.2 million), reversing a year-earlier net profit of RMB1.097 billion, as vehicle gross margin nearly halved to 9.4% from 19.4%. Total revenue was RMB25.667 billion (about US$3.8 billion), down 15.1% year over year but up 11.7% quarter on quarter, with deliveries of about 98,300 vehicles, down 11.5% annually. Non-GAAP net loss narrowed to RMB1.499 billion from the first quarter, overall gross margin recovered sequentially to 11.0%, and operating cash flow turned slightly positive even as free cash flow stayed negative RMB1.3 billion against roughly RMB87.5 billion in cash and investments. Third-quarter guidance for 95,000–100,000 deliveries and RMB26.6 billion–RMB28.0 billion in revenue sat well below consensus near RMB32.26 billion and about 121,900 units. Product refreshes including the new Li L8 and Li L6 continued, and a US$1 billion buyback was about 63% complete; Hong Kong shares closed up 0.88% at HK$48.1 even as earlier U.S. trading had driven the stock to a 52-week low.