Last Friday, Li Auto formally launched the all-new L9, introducing two distinct trims: Ultra and the flagship Livis. Compared with the prior generation originally launched in 2022, the all-new L9 represents a comprehensive technological leap, featuring substantial upgrades in by-wire chassis, autonomous driving suites, and powertrain efficiency, alongside a more refined aesthetic exterior design.
The L9 Livis is priced at RMB509,800 (a significant RMB50k reduction from prior guidance), while the Ultra starts at RMB459,800 (a RMB20k premium over its predecessor). Notably, Li Auto has discontinued the entry-level Pro variant, a tactical shift to reinforce its high-end positioning. To stimulate early order intake, the company is offering generous launch incentives, including a RMB20k cash discount for orders placed by 30 June, plus an additional RMB10k cash subsidy for existing owners. Following the launch event, vehicles have been immediately on display and available for test drives nationwide, with deliveries set to commence on 17 May.
L9 Upgrades in Key Areas
Chassis: Chassis-by-wire architecture becomes a major differentiator
The L9 Livis debuts Li Auto’s fully integrated by-wire active chassis, combining steerby- wire, brake-by-wire (EMB), and rear-wheel steering. In our view, this is one of the most notable hardware upgrades on the new vehicle. Rear-wheel steering reduces turning radius to 5.3m despite a body length of above 5.2m, while the 800V fully active suspension is designed to deliver millisecond-level response and improved ride composure. This should help the L9 further differentiate on driving refinement and maneuverability within the large SUV category.
Smart driving: self-developed M100 chips enhance full-stack vertical integration
The all-new L9 takes Li Auto’s intelligent driving capabilities to a new level. At its core are the company’s self-developed M100 5nm automotive-grade chips, providing a massive 1,280 TOPS of computing power per unit (2,560 TOPS for dual-SoC setup of L9 Livis variant). Combined with advanced 3D ViT perception model and the powerful Mach VLA large model, the system delivers better performance to perceive and comprehend the real 3D world with human-like spatial awareness and semantic understanding. This milestone also demonstrates Li Auto’s commitment to full-stack vertical integration, giving it strong control and continuous optimisation advantages across both hardware and software domains.
Powertrain and range: efficiency improves further
The new L9 adopts Li Auto’s third-generation 1.5T range extender and dual-motor intelligent AWD system, producing 420kW of total output and 710N·m of peak torque, with 0–100 km/h acceleration in 4.9 seconds. Importantly, WLTC charge-depleted fuel consumption declines to 6.3L/100km, nearly 20% lower than the prior generation. The vehicle also carries a 72.7kWh 5C battery pack, supports 420kW ultra-fast charging, and can add 420km of pure EV range in 10 minutes, while total CLTC range exceeds 1,650km.
Cockpit: continued focus on family-oriented premium experience
The front row is equipped with a 29-inch 6K integrated ultra-wide display supporting 90Hz refresh rate, while the cockpit chip is upgraded to Qualcomm Snapdragon 8797. The rear cabin adds a 21-inch 4K movable screen with 120mm electric sliding capability. The all-new L9 also features zero-gravity seats, second-row electric sunshades, and multi-level dimming insulated glass, all of which strongly enhance its premium family flagship positioning.
Sales Outlook for the Refreshed L9
While the all-new L9 is expected to support a normalisation of end-market demand, we do not anticipate a return to the historical sales peaks witnessed during 2022–23. This cautious outlook is underpinned by three primary headwinds:
i) distorted price perceptions: The aggressive clearing of legacy L9 inventory in 1Q26, where steep discounts of RMB50k-60k dragged transaction prices down to the RMB380k-390k range, has established a high-value anchor for consumers. This makes the higher starting price of the refreshed model feel less compelling in the immediate term.
ii) intensified competitive landscape: The premium six-seat flagship SUV segment has become markedly more crowded, with formidable rivals such as AITO Wenjie, NIO, and ZEEKR capturing significant market share, eroding L9's previous dominance.
iii) eroding competitiveness of EREV versus BEV: The technological moat of the EREV platform is narrowing. Rapid advancements in high-voltage BEV architectures now offer comparable charging convenience and superior cabin packaging efficiency. This, coupled with improved energy density, is effectively diluting L9's once-unique value proposition as the ultimate anxiety-free solution. In conclusion, we anticipate the refreshed L9 will drive a meaningful recovery in monthly deliveries, but we expect steady-state volumes of the model unlikely to return to the prior benchmark of 10k units per month.
Profitability Resilience Hinges more on Sales Mix of the Refreshed L9
We believe the profitability of the all-new L9 lineup will hinge heavily on the sales mix between the Ultra and Livis variants. Although the Ultra benefits from a RMB20k price hike over its predecessor, the incremental costs associated with the new bywire chassis and a suite of premium hardware upgrades, including the advanced audio system, enhanced cockpit computing/storage, expanded battery capacity, and zero-gravity seating, are expected to constrain margin upside. While the adoption of in-house developed M100 chips provides some cost tailwinds, it is unlikely to fully offset these hardware premiums.
In contrast, the Livis trim, positioned with a RMB50k premium over the Ultra, provides significantly more headroom to absorb elevated hardware costs. We expect the Livis to maintain superior margins, acting as a critical buffer for the overall L9 series' profitability provided it achieves a favourable weight in the overall sales mix.
Overall speaking, we believe the L9 is transitioning from a high-growth “blockbuster” phase where a single model could deliver both explosive volume and margin expansion, to a more mature offering with rationalised sales potential. In this increasingly contested market, the L9’s financial contribution will increasingly depend on mix rather than sheer sales volume.
1Q26 Preview
Li Auto posted solid 1Q26 delivery results of 95,142 units, comfortably exceeding management’s upper-end guidance of 90,000 units, driven by aggressive pricing and promotional subsidies during the aging L-series clearance, alongside early gains from the recent round of channel structural reforms.
However, in light of deeper discounts during product changeover, purchase tax subsidies across entire boards, and the absence of prior supplier rebates in 4Q25, we expect gross margin to decline by c.10ppts QoQ from 4Q25’s 17.8% level, leading to a substantial erosion of gross profit. Therefore, in spite of modest OPEX relief, we expect a potential operating loss of over RMB2.5 bn for the quarter, probably marking the company’s weakest quarterly earnings performance since its listing.
Valuation
Based on our current sales forecasts of 485k/600k units for 2026-27E, now its ADR trades at 1.0x 2026E P/S, which looks undemanding against historical ranges. Yet, we believe share prices upside may be capped by its unclear earnings trajectory ahead, exacerbated by a staggered product cycle and lingering profitability headwinds this year. As the core automotive business reaches a normalisation phase, we believe Li Auto’s longer-term investment thesis will increasingly shift toward its transition into a broad-based embodied-intelligence player, leveraging its enhanced capabilities in in-house chips, AI-driving models, and robotics. Maintain BUY with TP of US$22/HK$85.