Li Auto’s Leadership Shakeup Signals Strategic Pivot Amid Delivery Slump

Chinese electric vehicle manufacturer Li Auto is undergoing a significant leadership transformation as CEO Li Xiang assumes direct control over human resources operations. This substantial management reorganization, triggered by a sharp October delivery decline, represents the company's sixth major internal restructuring this year.

The management changes follow disappointing October performance figures, with vehicle deliveries plummeting 38% year-over-year to just 31,767 units. This contraction comes as competitors Nio and XPeng report record numbers, highlighting Li Auto's recent challenges despite the promising launch of its L6 model in April 2024, which had generated 70,000 orders.

Executive Team Sees Major Changes

Li Auto has consolidated its "Organization Department" and "Human Resources" into a single unit reporting directly to the CEO. The restructuring has resulted in the departure of two key executives: former HR head Yuan Chunfeng and former CFO office leader Li Wenzhi. The appointment of Yang Haishan as the new HR chief, coupled with the rebranding of the "Organization and Finance Group" to "CFO Function Group," indicates a decisive move away from the company's previous Huawei-inspired management framework.

Should investors sell immediately? Or is it worth buying Li Auto?

Strategic Developments Continue Amid Challenges:
- Hesai Technology Partnership: Exclusive collaboration maintains technology advancement focus
- Global Expansion Progress: Two new retail locations launched in Kazakhstan
- Cumulative Deliveries: Despite recent setbacks, total deliveries reach impressive 1.46 million vehicles

Critical Quarterly Report Looms

Market attention now turns to tomorrow's third-quarter earnings release, with investors questioning whether CEO Li Xiang's radical organizational changes can reverse the company's momentum. Shares opened at $20.42 today, with tomorrow's November 13 financial results potentially determining whether the downward trend can be arrested.

While most analysts currently maintain "hold" positions on the stock, the CEO's direct intervention in human resources management underscores the urgency of Li Auto's situation as competitive pressures mount in China's evolving EV landscape.