The Chinese carmaker expects revenue for the period to range between 26.5 billion yuan (US$3.7 billion) and 29.2 billion yuan, according to a filing on Wednesday. That missed analyst estimates of 37 billion yuan.

Projected vehicle deliveries also fell short, with guidance of 100,000 to 110,000 units in the fourth quarter, missing an estimate for 135,633 units.

The disappointing outlook follows a tough third-quarter that saw revenue fall 36%, the worst drop since the firm’s US listing in 2020.

The automaker’s shares rose 1.5% in early Hong Kong trading on Thursday. The stock is down around 22% this year.

Li Auto faced headwinds from supply chain bottlenecks and costs related to the recall of more than 11,000 of its Mega multi-purpose EVs, while also navigating intensifying competition in the market, chief financial officer Tie Li said in the statement. The recall was an unexpected blow and followed an incident in which one of its cars caught fire.

China’s reduction of EV subsidies is expected to cause a significant dip in deliveries during the first quarter of 2026, as customers rush to complete orders before year-end, CEO Li Xiang said during an earnings call.

He also apologised to customers facing delivery delays on its i6 models, which were caused by supply chain constraints and slower-than-expected production ramp up. Monthly production capacity of the i6 should steadily increase to 20,000 units starting early next year, he added.

Moving forward, Li also outlined the automaker’s vision to turn vehicles into “embodied AI” robots.

Investors have been pessimistic on the firm as it faces intensifying competition for its extended-range electric vehicles from local peers. Its Hong Kong-listed shares have tumbled more than 20% this year and lost more than half their value since an August 2023 peak.

Li Auto’s results echo similarly disappointing outlooks from Nio Inc and Xpeng Inc. pointing to a tough final quarter for China’s EV industry.