JPMorgan Chase slashed its Li Auto holdings by 98.8% in Q3 2025, reducing shares to just 4,771 amid declining confidence in the automaker’s growth trajectory. Li Auto’s stock price has fallen approximately 16% year-to-date, underperforming rivals like Nio and Xpeng, which saw gains of 47.95% and 130.8%, respectively. Delivery numbers dropped 38.25% year-over-year in October 2025, with the company struggling to meet its annual target of 640,000 vehicles amid intensified competition. Strategic missteps, including delayed pure-electric vehicle launches and product recalls, have eroded Li Auto’s market position. The third-quarter 2025 13F filing revealed a staggering reduction in holdings, signaling deepening concerns over Li Auto’s ability to navigate an increasingly competitive electric vehicle landscape. China’s EV market has transformed into a battleground dominated by technological innovation, leaving earlier adopters of extended-range electric vehicles like Li Auto struggling to maintain relevance. Li Auto’s financial metrics reveal sustained pressure with revenue for the first half of 2025 falling 2% year-over-year to 561.72 billion yuan. The company faces intense competitive pressures from brands like AITO and Leapmotor that have launched comparable models at lower price points. In response to mounting pressures, Li Auto has initiated multiple organizational overhauls aimed at boosting efficiency and accelerating technology adoption. The divergence in performance between Li Auto and its peers offers valuable lessons for institutional investors about the risks of complacency in the rapidly evolving EV sector.
JPMorgan Chase Nears Total Divestment from Li Auto as Stock Plummets 16% Amid Strategic Challenges
