Li Auto Shares Face Critical Test Amid Sustained Decline

Investors are bracing for a pivotal moment as Li Auto, the Chinese electric vehicle manufacturer, approaches its quarterly earnings release against a backdrop of persistent stock weakness. With third-quarter 2025 results scheduled for November 26 before market opening, the company finds itself navigating one of its most challenging periods in recent memory.

The stock's downward trajectory accelerated last week, closing Friday's session at $19.77 after declining 0.80%. This marked the third consecutive day of losses, with trading activity showing concerning patterns. Notably, volume expanded significantly during the price decline—a classic technical indicator suggesting intensified selling pressure.

Over the past ten trading sessions, Li Auto's market valuation has eroded by 5.18%. Friday's price action demonstrated considerable volatility, with shares fluctuating between $19.29 and $20.00 throughout the day.

Chart analysis reveals an alarming technical picture. Both short-term and long-term moving averages currently generate sell signals. Since reaching its peak on September 17, the equity has surrendered 25.93% of its value. Technical strategists anticipate further declines until a definitive base formation emerges. Any potential recovery attempts will likely encounter resistance at $20.07 and $22.21 levels.

Quarterly Results to Define Near-Term Direction

The upcoming earnings report represents a critical juncture for the embattled automaker. Market participants will scrutinize every aspect of the release, with particular focus on three key areas:

• Vehicle delivery performance and guidance
• Progress regarding new model strategy implementation
• Overall financial health and margin trends

Within China's intensely competitive electric vehicle landscape, each data point will undergo exhaustive analysis. The fundamental question remains whether the quarterly figures can reverse the prevailing negative sentiment.

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

Operational Performance Offers Contrasting Narrative

Despite the bearish trading patterns, Li Auto continues to demonstrate operational achievements. The company reported October deliveries of 31,767 vehicles, bringing cumulative deliveries beyond the 1.46 million unit milestone.

Strategic expansion initiatives remain underway across multiple fronts:

• Exclusive partnership with Hesai Technology for LiDAR systems integration
• Inauguration of first overseas manufacturing facility in Uzbekistan
• Establishment of international headquarters in Hong Kong

Whether these developments can ultimately counteract the current downward momentum remains uncertain.

Market Positioning and Outlook

The technical landscape delivers an unambiguous message: Li Auto shares currently represent hazardous territory for risk-averse investors. The convergence of negative technical indicators, pre-earnings anxiety, and broader market pressures creates a challenging environment.

All attention now turns to November 26, when the quarterly disclosure will either validate current market concerns or provide the catalyst for a meaningful reversal. Until then, volatility appears likely to persist as positions adjust ahead of the crucial announcement.