Investing.com -- Li Auto shares slipped about 3% in U.S. premarket trading after the Chinese electric vehicle maker reported fourth-quarter results in line with earnings expectations but issued weaker-than-expected guidance for the start of 2026.

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Li Auto reported fourth-quarter earnings per share of RMB0.25, matching analyst estimates. Revenue came in at RMB28.78 billion, also in line with the consensus forecast of RMB28.84 billion.

The company delivered 109,194 vehicles during the quarter.

Vehicle sales totaled RMB27.3 billion in the fourth quarter of 2025, down 36.1% from RMB42.6 billion in the same period a year earlier. Vehicle margin fell to 16.8% from 19.7% a year earlier.

Li Auto’s gross margin dropped to 17.8% from 20.3%, while operating margin turned negative at 1.5%, compared with a positive 8.4% in the fourth quarter of 2024.

For the full year, Li Auto reported total revenue of RMB112.3 billion, a 22.3% decline from RMB144.5 billion in 2024. Adjusted earnings per share came in at RMB2.25 for 2025, down sharply from RMB10.04 in the previous year.

“Following our proactive strategic adjustments in 2025, we have seen positive momentum across organizational efficiency, supply capability, and sales system since the fourth quarter," said Xiang Li, chairman and CEO of Li Auto.

"In 2026, we will embark on an important product cycle. The all-new Li L9 to be launched in the second quarter will feature comprehensive upgrades in powertrain, autonomous driving, and chassis technology, all designed to deliver a generational leap in user experience. Looking ahead, we will continue to refine our restructured AI-native R&D system and consistently invest in R&D to drive product innovation and technological breakthroughs over the long term.”

The company forecast first-quarter 2026 revenue of RMB20.4 billion to RMB21.6 billion, below the consensus estimate of RMB24 billion.

Li Auto also expects vehicle deliveries between 85,000 and 90,000 units for the quarter, representing a year-over-year change ranging from a decline of 8.5% to an increase of 3.1%.