Li Auto’s second-quarter results offered investors two versions of the same company. One is beginning to recover from a bruising start to the year, helped by a richer product mix and the arrival of a new flagship.

Li Auto remains ambitious. Founder Li Xiang has said the company's 2026 target is to grow deliveries by more than 20% from 406,300 units in 2025. Yet the company's latest annual results show how costly its transition has become.

 Li Auto has moved to stimulate sales through measures including insurance subsidies, but the strategy has triggered a backlash online from recent buyers who felt they had paid too much too soon.

The launch of Li Auto's i8 has become a major talking point in China's auto market not because the model is radically different, but because it arrives at the moment when the large six-seat SUV segment is filling with serious competitors.