06:23 AM EDT, 03/12/2026 (MT Newswires) -- Li Auto ( LI ) issued a weak first-quarter outlook for revenue on Thursday, while the Chinese automaker reported lower-than-expected sales in the previous three-month period.

The company anticipates revenue to be in a range of 20.4 billion renminbi ($2.9 billion) to 21.6 billion renminbi ($3.1 billion) for the ongoing three-month period, representing an annual decline of 21% to 17%. The current consensus on FactSet is for sales of 24.03 billion renminbi.

Li Auto ( LI ) expects to deliver between 85,000 and 90,000 vehicles for the first quarter, having distributed 27,668 and 26,421 vehicles in January and February, respectively. The guidance reflects a year-over-year decrease of 8.5% to 3.1%. In the fourth quarter, the company saw deliveries fall 31% to 109,194 vehicles.

The electric vehicle manufacturer's Nasdaq-listed shares declined 1.3% in the most recent premarket activity.

"Following our proactive strategic adjustments in 2025, we have seen positive momentum across organizational efficiency, supply capability, and sales system since the fourth quarter," Chief Executive Xiang Li said in a statement. "Looking ahead, we will continue to refine our restructured (artificial intelligence)-native (research and development) system and consistently invest in R&D to drive product innovation and technological breakthroughs over the long term."

For the December quarter, the company reported adjusted earnings of 0.25 renminbi per American depositary share, down from 3.79 renminbi a year earlier, but better than the Street's view for 0.22 renminbi. Revenue dropped 35% to 28.78 renminbi, trailing the average analyst estimate for 29.08 billion renminbi.

Vehicle sales slid 36% on a yearly basis to 27.25 billion renminbi, mainly due to lower deliveries. Sequentially, vehicle sales were up 5.4%, according to the Chinese EV maker.

Gross margin stood at 17.8% in the fourth quarter, down from 20.3% in the prior-year period, primarily due to changes in vehicle margin, Li Auto ( LI ) said.