Too many EVs chasing business in China have made it difficult for auto makers to gain any traction in the world's largest new car market. The competition is showing up in financial results.

Wednesday, Li reported a per-share loss of 11 cents from sales of $3.8 billion. Wall Street was looking for a 6-cent loss from $3.7 billion in sales. A year ago, Li reported earnings per share of about 10 cents from sales of $4.2 billion.

Li's U.S.-listed American depositary receipts, ADRs, were down 1.2% in premarket trading at $12.12, while S&P 500 futures were off 0.1%.

Coming into Wednesday trading, ADRs were down 28% this year. Falling sales have weighed on investor sentiment. In the second quarter, Li delivered about 98,000 cars, down 11% year over year. Through July, Li delivered about 224,000 vehicles, down 5% year over year.

The Chinese car market has been difficult, with many auto makers cutting prices, looking for market share. Li is doing what it can, updating models and introducing new cars.

"Amid intense market competition and a major model refresh cycle, Li Auto remained the best-selling domestic automotive brand in China's [$30,000-and-above EV] market in the first half of 2026," said CEO Xiang Li in a news release. "We have completed the upgrade of [the] Li L series and are now refreshing our battery electric vehicle lineup. Notably, the new Li L6 [SUV] generated robust order flow."

For the third quarter, Li expects to deliver about 97,500 vehicles, down from the second quarter, but up about 5% year over year. Sales are expected to be about $4 billion, below the $4.9 billion analysts project, according to FactSet.

Guidance looks light. Things aren't getting any easier for Chinese EV makers.