On March 21st, Li Auto announced on the Hong Kong Stock Exchange that due to lower-than-expected sales orders, the company now expects to deliver 76,000 to 78,000 vehicles in the first quarter of 2024.

Li Auto had previously projected first-quarter deliveries of 100,000 to 103,000 units.

In the announcement, Li Xiang also reviewed the root causes and solutions for the issues encountered in March:

Firstly, the company mistakenly managed Li Auto MEGA's stage 0-to-1 (business verification phase) as if it were in stage 1-to-10 (high-growth phase).

Going forward, the company will patiently manage Li Auto MEGA according to the stage 0-to-1 rhythm, focusing on core user groups and high-end electric vehicle markets in major cities.

After effectively completing stage 0-to-1, the company will then expand into additional cities and target a broader user base.

Second, Ideal has been overly focused on volume and competition from top to bottom, allowing our ambition to exceed our values, resulting in a significant decline in our core strengths of user value and operational efficiency.

"Going forward, we will lower our sales expectations, return to healthy growth, and focus on our users rather than competition. We will return to our core competency of enhancing user value and improving operational efficiency," said Li Xiang.