Li Auto reported a wider quarterly loss on Wednesday, missing analyst estimates as the Nasdaq-listed Chinese automaker grapples with subdued demand and margin pressure. For the three months ended June, the company posted a net loss of 1.70 billion yuan ($253 million), compared to a net profit of 1.09 billion yuan in the same period last year. Revenue fell 15% to 25.67 billion yuan, slightly above market expectations.

The firm delivered 98,330 vehicles in the second quarter, an 11% year-over-year decline. Profitability remained under pressure, with vehicle margins at 9.4% and gross margins at 11.0%, though the company attributed the margin shift to a different product mix. Despite the challenges, Li Auto raised its third-quarter delivery outlook to between 95,000 and 100,000 units, forecasting roughly stable revenue between 26.6 billion and 28.0 billion yuan.

CFO Li Tie cited optimism from a higher sales contribution from the Livis trim and the launch of refreshed BEV models. The company is also expanding internationally, beginning local production in Kazakhstan and planning launches in Europe and the Asia-Pacific region.