Li Auto Surges 4% on a $1 Billion Buyback: Is LI or NIO the Better Chinese EV Bet?

2 hours ago 4

David Moadel

Tue, March 24, 2026 astatine 7:38 AM CDT 6 min read

Li Auto (LI) announced a $1 cardinal stock repurchase programme aft Q4 deliveries fell 31.2% twelvemonth implicit twelvemonth to 109,194 units, though the institution maintains $8.11 cardinal successful currency and projects the caller L9 motorboat successful Q2 2026 arsenic the cardinal maturation catalyst.
Nio (NIO) posted 124,807 Q4 deliveries, up 71.7% twelvemonth implicit year, achieved its archetypal GAAP quarterly profit, improved conveyance margins to 18.1%, and chopped R&D spending 44.3% and SG&A 27.5%, but carries lone $1.61 cardinal successful currency against $15.97 cardinal successful liabilities.
Li Auto is betting connected a merchandise rhythm betterment with the L9 motorboat to reverse transportation declines, portion Nio is capitalizing connected momentum from its multi-brand strategy and archetypal profitability milestone, making it the riskier high-growth play versus Li Auto’s much capital-secure but presently contracting volumes.
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Li Auto (NASDAQ:LI) banal is up astir 4% successful aboriginal trading aft the institution announced a $1 cardinal stock repurchase program, a determination that has instantly divided the capitalist assemblage into 2 camps. LI banal closed yesterday adjacent $17, bouncing disconnected a 52-week debased conscionable nether $16.

The buyback is simply a bold awesome from management, but the statement it has sparked goes good beyond a azygous superior allocation decision. For investors watching the Chinese EV space, this announcement forces a harder question: is Li Auto inactive the stronger position, oregon has rival Nio (NYSE:NIO) softly go the much compelling bet?

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The bull lawsuit connected the buyback is straightforward. Li Auto is sitting connected $8.11 cardinal successful cash, which gives it the firepower to enactment the banal without putting operations astatine risk. Deploying $1 cardinal of that to repurchase shares astatine prices adjacent multi-year lows is precisely the benignant of superior subject semipermanent investors privation to spot from management.

The carnivore lawsuit is harder to dismiss. Free currency travel for full-year 2025 came successful astatine antagonistic $1.83 billion, meaning Li Auto burned currency adjacent earlier penning a buyback check. Furthermore, the automaker's conveyance deliveries fell 31.2% twelvemonth implicit twelvemonth successful Q4 2025 to 109,194 units, and Q1 2026 guidance calls for different year-over-year diminution of 16% to 21% successful revenue. Buying backmost banal portion deliveries are contracting raises a morganatic question astir Li Auto's priorities.

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