New-Generation Car Manufacturers Breaking One Million in Sales for the First Time, Kicking Off the ‘Revenge’ Battle

One year ago, Li Auto, which dominated the new force circle with its extended-range products, launched its first pure electric model, the MEGA, but unexpectedly encountered an unprecedented setback. This morning (February 25), Li Auto suddenly announced the exterior design of its first pure electric SUV, named the Li Auto i8. It is reported that the i series is Li Auto’s new line of pure electric SUVs, alongside the extended-range L series and the pure electric MEGA, forming a complete product matrix. Li Auto released two official images of the i8 on its official Weibo, showcasing the front and rear design of the new vehicle, but did not disclose the side profile. Li Auto stated that the i8 adopts a completely new exterior design, continuing the “Foresight-Pioneer” design language and representing the design direction for its next-generation pure electric SUVs.Encouraged by this announcement, Li Auto’s Hong Kong stock price rose sharply today, with a gain of over 14% at one point, closing up 12.5%. The company’s market value surged by nearly 30 billion, reaching more than HKD 250 billion. Even Li Auto’s CEO, Li Xiang, who had been silent about product developments for a long time, posted the new car’s design images on his personal Weibo, explaining the differences between the two SUV product lines: the “L” in the extended-range SUV represents “Leading,” while the “i” in the pure electric SUV represents “Intelligence.”About three hours later, he posted again, explaining that the official unveiling of the Li Auto i8 was originally scheduled for February 27, but after learning that Xiaomi’s “Double Ultra” launch event would also be on the 27th, he decided to “make way” for Xiaomi’s event to avoid any confusion. This led to today’s unveiling of the i8, with Li Xiang saying, “We almost clashed with Xiaomi’s event, and friendly communication between car companies is crucial!”

On March 1, 2023, the Li Auto MEGA was launched, priced at RMB 559,800, positioned as a family tech flagship MPV with only one configuration. Li Xiang had high hopes for the MEGA, expecting it to become the top-seller in the above 500,000 yuan category, regardless of car type or energy form. However, the MEGA was ridiculed for its design, which resembled a coffin, causing a massive public backlash. The car saw over 10,000 cancellations, and the number of preorders barely reached 3,000. As a result, Li Auto’s stock price began to plummet. Li Xiang, who had been quite active on Weibo, eventually chose to go silent, setting his Weibo to “display posts from the last six months only.” Before today’s post, his last tweet was on January 7, when Li Auto donated RMB 5 million for earthquake relief in Shigatse, Tibet.Despite the setback with the MEGA, Li Auto still achieved impressive results, thanks to the popularity of its L series. In 2024, Li Auto’s total deliveries exceeded 500,000 units, a 33% year-on-year increase. As of the end of January 2025, Li Auto’s cumulative deliveries reached 1.1638 million units, making it the first new force car company in China to break the one million mark. After the failure of the MEGA, Li Auto decided to delay the release of three planned pure electric SUVs originally scheduled for 2024 to the first half of 2025. In an internal letter, Li Xiang admitted that Li Auto made a mistake in its product launch rhythm, treating the MEGA’s “0-to-1” phase (business validation) as though it were the “1-to-10” phase (rapid development). “Li Auto MEGA and high-voltage pure electric cars must go through a 0-to-1 phase, just like Li ONE and the extended range electric vehicle. It is a misjudgment to expect the MEGA to immediately have the same momentum as the L series.”

From the Li Auto i8’s design, which differs significantly from the “pioneer” MEGA and is more in line with the L series’ more stable design, it appears that Li Xiang is trying to balance market feedback with the company’s own development pace. The fact that a mere design sketch, with no additional details, has led to a surge in stock prices demonstrates the negative reception towards the MEGA’s design. “Two pictures have caused Li Auto’s market value to increase by more than 20 billion, which shows that the capital market recognizes the new design,” said market experts. The L series, with its family-oriented design, has built a high level of recognition, and the i series can leverage this momentum to improve brand recognition and consumer loyalty.In addition to the design, the pricing strategy of the Li Auto i8 is another major point of interest. Reports suggest that the i8 will be officially released at the 2025 Shanghai Auto Show in April, with an expected price range of RMB 350,000 to 500,000. As a high-end pure electric SUV, the i8 will directly compete with models such as the Tesla Model Y and NIO ES8. Regardless, the unveiling of Li Auto’s first pure electric SUV signals the start of its “revenge” battle in the pure electric market.Meanwhile, another point of interest is Li Xiang’s strong push for AI technology—this is evident from his latest statement about the “i” in the pure electric SUV series standing for “intelligence.” From December 25-27, 2024, Li Auto held the “2024 Li Auto AI Talk” series, showcasing its determination, technological strength, and future roadmap in artificial intelligence. Li Xiang, who had been silent for nine months, announced the “All in AI” strategy during the event, stating that Li Auto’s goal is to achieve “automobilization of artificial intelligence,” not just the smartification of cars.

He further added that cars would evolve from transportation tools of the industrial age to spatial robots in the era of artificial intelligence. Li Auto’s vision has now expanded to “connecting the physical and digital worlds, becoming a global leader in artificial intelligence.”Additionally, on February 19, 2025, Li Auto announced that its AI assistant, the Li Xiang Student App, would be fully integrated with DeepSeek R1 & V3 671B full version and would allow seamless switching between the app and Li Auto’s self-developed MindGPT model. According to a recent report by Tianfeng Securities, Li Auto’s leadership is considered the most AI-savvy in the automotive industry. Their algorithm architecture is leading, with the company offering salaries 30% higher than the industry average to retain top AI talent. Moreover, Li Auto completed its data feedback loop by mid-2024, quickly accumulating training computing power, which is why they are now accelerating their AI pace with Li Xiang personally leading the charge.Considering Li Auto’s leadership in smart tech and the upcoming new electric products, Tianfeng Securities has projected a 2025 price-to-earnings ratio of 25 for the company, with a target market value of HKD 375 billion. This target is higher than the HKD 330 billion market cap Li Auto briefly reached before the MEGA release, and even if it merely regains that level, the i series’ launch must succeed. In fact, Li Xiang has even higher expectations for Li Auto’s market value. During the “AI Talk” event, he emphasized that AI represents the future for Li Auto. The company must offer valuable products and services and set lofty goals. “For Li Auto, achieving L4 autonomous driving, adopting innovative business models, and driving technology, product, and user growth are key to reaching a trillion-dollar market value.”