Key facts
- Li Auto granted 35 million stock options to three senior executives.
- The options will vest if the company's market capitalization reaches HK$1 trillion ($128 billion).
- The vesting is tied to a market value goal over the next decade.
- In Q1 2026, Li Auto reported a net loss of 2.3 billion yuan ($334 million).
- The company's gross margin fell to a record low of 7.9% in the first quarter of 2026.
Li Auto Inc. has awarded 35 million stock options to three senior executives, with the vesting contingent on the Chinese electric-vehicle maker achieving a market capitalization of HK$1 trillion ($128 billion) within the next decade. This incentive structure, similar to Tesla Inc.'s approach, aims to retain key personnel and restore investor confidence.
The move comes as Li Auto faces significant financial headwinds, including a net loss of 2.3 billion yuan ($334 million) in the first quarter of 2026 and a record-low gross margin of 7.9% during the same period. The company is also navigating executive departures and questions surrounding its strategic pivot towards embodied artificial intelligence.