Li Auto unveils MEGA and i9, previews self-developed chip and battery rollout

Li Auto unveiled plans for two new electric models launching within two weeks of each other — the new MEGA MPV on Sept. 2 and the flagship i9 SUV mid-September — while confirming its self-developed M100 autonomous-driving chip has shipped more than 50,000 units and its self-developed battery will cover the entire lineup in coming months.

The announcements came during the company's Q2 earnings call on Aug. 26, where CEO Li Xiang and President Ma Donghui also addressed cost pressures, margins, global expansion, and cash-flow outlook. Li declared his ambition to rank among the top three brands in China's 200,000-yuan-and-above passenger-car segment, a market worth roughly $27,778 and up per vehicle.

Q2 results: revenue rises, cash flow turns positive

Li Auto reported Q2 revenue of over 25.6 billion yuan (approx. $3.56 billion), down 15.1% year over year from 30.2 billion yuan but up 11.7% from Q1's 23 billion yuan. Net loss narrowed to 1.7 billion yuan (approx. $236 million) from a year-ago profit of 1.1 billion yuan and a Q1 loss of 2.3 billion yuan.

Gross margin improved to 11.0% from 7.9% in Q1, though it remains well below the 20.1% recorded a year earlier. Vehicle gross margin rose to 9.4% from 6.1% in Q1. Operating cash flow flipped to a 15-million-yuan positive (approx. $2.08 million) from a 3 billion-yuan outflow a year ago and a 6.1 billion-yuan Q1 outflow.

Li Auto ended Q2 with 87.5 billion yuan (approx. $12.15 billion) in cash reserves, the company said, funding product transitions, R&D, supercharging-network buildout, and overseas expansion.

Two new EVs, a family lineup strategy

The new MEGA brings rear-wheel steering, steer-by-wire, and an active anti-roll bar to tighten its turning radius and reduce body roll — addressing a commonly cited weakness of large MPVs. Inside, the cabin gets a Qualcomm high-performance smart-cockpit chip and a LiDAR-equipped M100 autonomous-driving chip for expanded side and rear perception.

The i9, targeting multi-member families, pairs an 800-volt 5C high-voltage platform with Li Auto's next-generation self-developed electric drive. It will plug into the company's self-built 5C supercharging network for ultra-fast refueling. Li Auto said the i9 and the MEGA are positioned as a complementary pair in the premium multi-passenger space, alongside the existing L-series hybrids.

Order mix is shifting: Li Auto disclosed that range-extended and pure-EV orders are now roughly even, and pure-EV share is expected to grow in H2 as the i9 and refreshed MEGA arrive.

Self-developed chip and battery rollout

The M100 chip began volume production in Q2 with the refreshed L-series. OTA 9.1, pushed in late July, lowered end-to-end latency and added "efficient" and "comfortable" speed-preference modes for the M100's VLA driving model. In September, the VLA model will expand to vehicles built on Nvidia Thor and Orin platforms. A major OTA 9.2 update in October will migrate the system to a 3D ViT perception architecture with three times the parameters and 4.6 times the compute, followed by an OTA 9.3 late in the year with further VLA parameter scaling.

On the battery side, Li Auto confirmed self-developed cells, packs, battery-management software, and thermal management have now completed its three-electric-system stack. The self-developed pack debuted in the refreshed L8, L6, and i8. Starting in H2, every Li Auto model will carry the company's own battery, though the firm stressed the move does not replace its partnership with CATL.

Margins, costs and cash flow outlook

Li Xiang said the company will absorb rather than pass on rising costs from chips and lithium carbonate, setting a long-term gross-margin target of 15% to 20%. He attributed the Q2 margin gap versus last year to product-mix shifts and raw-material inflation, and pointed to upcoming model launches and continued cost control as catalysts for further improvement.

For Q3, Li Auto guided for vehicle deliveries of 95,000 to 100,000 units and revenue of 26.6 billion to 28 billion yuan. Full-year capital expenditure is expected to reach about 6 billion yuan, mostly for its supercharging network. Management said H2 free cash flow is likely to turn positive if Q4 deliveries ramp as planned.

Overseas push accelerates

Li Auto announced it will begin selling in the Middle East from September, starting with a Dubai launch event. The refreshed L9 entered Kazakhstan and Uzbekistan in July, and the firm signed a local-assembly agreement with a leading Kazakh automotive group. Europe will see its first public debut at the Paris motor show in October, followed by a formal market entry in Q4, with pure-EV models leading the charge.

For right-hand-drive markets, the MEGA is being introduced in Hong Kong and Singapore, and a right-hand-drive version of the i6 will launch later this year. Li Auto cautioned that geopolitical and regulatory risks remain, and said it will pace its global expansion carefully while building compliance, after-sales, and brand infrastructure in each region.