- Li Auto stated that it expects to fund the $1 billion share repurchase program using its existing cash balance.
- During its fourth-quarter results announced earlier this month, Li Auto stated that its cash position stood at $14.5 billion as of Dec. 31, 2025.
- Li Auto reported a 31% year-on-year decline in vehicle deliveries in Q4, and a 19% fall for the full year 2025.
China’s Tesla rival Li Auto Inc. (LI) on Tuesday announced that its board of directors has approved a share repurchase program, authorizing it to buy back shares up to $1 billion.
The company said this allows Li Auto to repurchase shares from the date of authorization through March 31, 2027.
Li Auto’s American Depository Shares (ADS) were up more than 3% in Tuesday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘bullish’ territory, with message volumes at ‘high’ levels. LI was among the top trending tickers on the platform at the time of writing.
Repurchase Expected To Be Funded Using Existing Cash
Li Auto stated that it expects to fund the $1 billion share repurchase program using its existing cash balance.
“The share repurchase program reflects our strong confidence in Li Auto’s strategic roadmap and future value creation, and will ultimately benefit the Company and create value for our shareholders,” said Li Auto CEO Xiang Li.
Li Auto’s Q4 Comes In Mixed
During its fourth-quarter (Q4) and fiscal 2025 results announced earlier this month, Li Auto stated that its cash position stood at $14.5 billion as of Dec. 31, 2025.
The company’s Q4 was a mixed one, with the Chinese automaker reporting earnings per share (EPS) of $0.04 during the quarter on revenue of $4.1 billion, while Wall Street expected an EPS of $0.03 on revenue of $4.23 billion, according to Stocktwits data.
Vehicle deliveries registered a significant decline in Q4, falling 31% year-on-year to 109,194 units during the quarter. For the full year 2025, deliveries fell nearly 19% to 406,343 units.
The company is pinning its hopes on the Li L9 that is scheduled to be launched in the second quarter of 2026, stating that it will feature comprehensive upgrades in powertrain, autonomous driving, and chassis technology.
LI ADS is down 1% year-to-date, while TSLA stock is down 15%. The Avantis Emerging Markets Equity ETF (AVEM) is up 32% over the past 12 months.
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