NIO or Li Auto: Which Chinese EV Maker Has an Edge Now?

Industry Overview - China's new-energy vehicle (NEV) market, including battery electric vehicles (BEVs) and plug-in hybrids (PHEVs), saw over 11 million units sold in 2024, a 40.7% increase from 2023. In Q1 2025, sales of passenger NEVs were estimated at 2.86 million units, up 43% year-over-year [1][2]. Company Comparison: Li Auto vs. NIO Product Lineup & Upcoming Offerings - Li Auto has established a strong reputation with its extended-range electric vehicles (EREVs) and plans to launch additional BEVs, including models Li i8, i6, i7, and i9 within the next 12-18 months [3]. - NIO focuses solely on pure EV models, with a diverse lineup and plans for new launches, including the NIO 89 and additional models under its ONVO and Firefly brands [4][5]. Deliveries - Li Auto delivered 500,508 vehicles in 2024, a 33% increase from 2023, and 92,864 units in Q1 2025, up 15.5% year-over-year, with cumulative deliveries reaching 1,226,736 units as of March 31, 2025 [6]. - NIO delivered 221,970 vehicles in 2024, a 30.7% increase, and 42,094 units in Q1 2025, up 40.1% year-over-year, with cumulative deliveries totaling 713,658 units [7]. Revenues, Margins & Bottom Line - Li Auto reported total revenues of $19.8 billion in 2024, a 16.6$961 million and a net income of $1.5 billion [8]. - NIO generated over$9 billion in revenues in 2024, an 18.2% increase, but incurred an operating loss of $3 billion and a net loss exceeding$3 billion [9][10]. Balance Sheet - Li Auto has a strong balance sheet with $9 billion in cash and manageable long-term debt of$1.1 billion, allowing for significant investments in R&D and expansion [12]. - NIO holds $2.6 billion in cash with$1.56 billion in long-term borrowings, indicating a higher leverage risk [13]. Retail and Global Expansion - Li Auto operates 502 retail stores and 478 service centers in China, with plans to expand its supercharging stations to 4,000 by the end of 2025 [15]. - NIO has a significant retail presence with 180 NIO Houses and aims to enter 25 countries by the end of 2025 [16]. Technology & Innovation - NIO is advancing its battery swap technology, having deployed over 3,200 power swap stations and partnering with CATL to build a large battery swap network [17]. - Li Auto is focusing on autonomous driving technology, rolling out advanced driver assistance systems and aiming to develop humanoid robots after achieving level-4 autonomous driving capabilities [18][19]. Stock Performance and Valuation - Li Auto has shown better stock performance in 2025 and holds a Value Score of B, while NIO has a Value Score of D, indicating Li Auto's stronger fundamentals [20][21]. Conclusion - Li Auto currently leads in vehicle deliveries, profitability, margins, financial health, and self-driving capabilities, positioning it as a more favorable investment compared to NIO, which faces challenges with high losses and a leveraged balance sheet [26][27].