LI AUTO(LI) AIRPO·2025-01-06 16:26Summary of Conference Call on Li Auto's AI Strategy Company and Industry - Company: Li Auto - Industry: Automotive and AI Technology Core Points and Arguments 1. AI Development Stages: Li Auto's AI strategy is divided into three stages: - Enhancement Stage: Focus on auxiliary tasks without accountability for outcomes - Assistant Stage: Capable of handling multiple tasks and responsible for results - Agent Stage: Autonomous operation without needing instructions [2][3][4] 2. Autonomous Driving Levels: - L4 Level: High-level autonomous driving where the vehicle can navigate from point to point autonomously, including tasks like picking up children from school - L5 Level: Fully autonomous driving, functioning as a robot to assist in daily tasks [3][4] 3. Data and Model Integration: Li Auto utilizes a dual model architecture (end-to-end and VLM) to enhance driving capabilities, drawing parallels to human cognitive processes [4][5] 4. Smart Cabin Development: The company is upgrading its smart cabin technology, currently utilizing MindGPT 3.0, which is comparable to ChatGPT 2.0, to enhance user interaction through natural language processing [5][6] 5. AI Strategy Framework: Li Auto's AI strategy is influenced by three key factors: data scale, computing power, and model capability, which are essential for competing against rivals [8][9] 6. Talent Acquisition: The company has recruited high-level talent to bolster its AI capabilities, including experts in smart driving and AI model development [9][10] 7. Competitive Positioning: Li Auto is positioned favorably against competitors like Huawei and Xiaomi in terms of data collection and model capabilities, with a significant lead in accumulated driving mileage of 1.9 billion kilometers as of July 2023 [12][13] 8. Sales Performance: Li Auto's total vehicle deliveries exceeded 500,000 units by 2024, indicating strong market demand and a leading position in the smart driving segment [13][20] 9. Future Growth Potential: The company anticipates at least a 30% increase in sales for the upcoming year, supported by its strategic shift towards AI and smart technology [19][20] 10. Market Challenges: As Li Auto expands into broader AI applications, it faces intensified competition from major tech firms like Microsoft, Google, and domestic players like Huawei and ByteDance [16][17] Other Important Content - Investment Outlook: The current valuation of Li Auto is considered favorable, with potential for growth as the company transitions from automotive to broader AI applications [20] - Long-term Vision: The strategic direction towards becoming a giant in intelligent technology is seen as a viable path for Li Auto, opening up larger market opportunities [19][20]