Li Auto Share Buyback Plan Under Discussion as Stock Nears Record Lows

The Li Auto share buyback plan is currently being discussed internally as the Chinese electric vehicle manufacturer faces mounting market pressure and declining investor confidence. According to reports from local media outlet 21jingji, company founder, chairman, and CEO Li Xiang is evaluating the possibility of repurchasing some of the company’s Hong Kong-listed shares. The discussion emerges as the company’s stock continues to trade close to historic lows following a period of slowing vehicle sales and increasing competitive pressure within China’s rapidly evolving EV market.

Stock Price Pressure Triggers Strategic Consideration

The discussion around a potential share repurchase comes after the company’s Hong Kong-listed shares dropped significantly in recent months. The stock reached a record low of HK$61.15 on January 20 before recovering slightly to close at HK$69.85 per share on Wednesday. Market observers believe the Li Auto share buyback plan could serve as a financial signal aimed at restoring investor confidence while stabilizing market valuation during a challenging phase for the company.

Buyback Details Still Under Internal Review

Despite growing market speculation, key elements of the proposed buyback remain under discussion. Sources cited in the report indicate that the exact repurchase ratio and total capital allocation have not yet been finalized. When approached for confirmation, a company representative acknowledged that the idea remains at a preliminary discussion stage. If implemented, the initiative would represent the first executive-led share repurchase since the company completed its secondary listing in Hong Kong in August 2021.

Delivery Slowdown and Market Competition

Operational performance has also played a role in the recent pressure on the company’s stock price. In 2025, the automaker delivered a total of 406,300 vehicles, representing a 19 percent year-on-year decline and falling short of its internal targets. Competitive pressure from other Chinese EV manufacturers, including vehicles backed by Huawei’s Aito brand, has intensified competition in the premium electric SUV segment where the company traditionally holds a strong presence.

Leadership Changes Add to Investor Concerns

Beyond market performance, internal management transitions have also contributed to uncertainty around the company’s near-term outlook. Several senior executives have departed since early 2026, including Han Ling, head of smart driving products, who reportedly resigned on March 9. Earlier exits included Chen Wei, previously responsible for foundation model development. Such leadership changes have raised concerns among investors about the company’s ability to maintain momentum in autonomous driving and intelligent vehicle technologies.

Across the broader Chinese electric vehicle sector, executive share purchases and buybacks have previously been used as mechanisms to reinforce market confidence during volatile periods. Over the past two years, leaders of other EV manufacturers, including Leapmotor and Xpeng, have increased their personal shareholdings to support company valuations. Whether the Li Auto share buyback plan ultimately materializes may depend on how the company balances financial signaling with its long-term strategic priorities in an increasingly competitive EV market.