Ming Hsun Lee

Ming Hsun Li asked about Li Auto's sales strategy for 2026 given the upcoming changes in trade-in subsidy policy and the increase in EV purchase tax from 0% to 5%. He also inquired about the expected new features, specifications, and advantages for the new generation of EREV L series models in 2026.

Answer

Mr. Xiang Li (Founder, Chairman, and CEO) stated that Li Auto expects a pull-forward effect in Q4 2025 followed by a dip in Q1 2026 due to policy changes, but remains optimistic about NEV penetration. The company's strategy includes a "peace of mind purchase program" for I6 customers, ensuring all 2026 models meet new standards for incentives, and offsetting policy impacts through technology like 500-800 volt high voltage platforms and 5C ultra-fast batteries. He also mentioned plans for 4,800 supercharging stations by 2026 and accelerated product iteration. For the 2026 L series, he hinted at a major generational upgrade based on user feedback and technology accumulation, a simplified SKU approach with standard features, design upgrades retaining DNA while enhancing premium feel, and 5C standard supercharging on all models.

Ming Hsun Li asked about Li Auto's sales strategy for 2026, considering the upcoming changes in trade-in subsidy policy and the increase in EV purchase tax from 0% to 5%. He also inquired about the expected new features, specifications, and advantages of the new generation EREV L series models planned for 2026.

Answer

CEO Xiang Li explained that Li Auto expects a pull-forward effect in Q4 2025, followed by a dip in Q1 2026 due to policy changes. The company's strategy includes a "peace of mind purchase program" for I6 customers, ensuring all 2026 models meet new standards, and offsetting policy impacts through technology (500-800V platform, 5C ultra-fast batteries, 4,800 supercharging stations by 2026). For the 2026 L series, he mentioned a major generational upgrade based on user feedback, simplified SKU approach, design upgrades for premium feel, and 5C standard supercharging on all models to reclaim EREV leadership.

Ming Hsun Lee from Bank of America inquired about Li Auto's plans for its 5C supercharging network, specifically whether it will be opened to other brands. He also asked about the future development direction for autonomous driving technology beyond the current VLA.

Answer

President Dongguin Ma confirmed that while 2C and 4C charging stalls are open to other brands, Li Auto owners will always have the best experience due to seamless vehicle-station integration. An executive then explained that the future of autonomous driving beyond VLA involves scaling the AI model's 'brain' (parameters) and 'heart' (on-device computing power), leveraging reinforcement learning with world models (RLAIF) to train the system on complex scenarios, with the goal of achieving L4 autonomy by 2027.

Ming Hsun Lee asked about NIO's overseas expansion strategy for the next few years, given its past direct-to-customer model in Europe. He also inquired about future plans for the ONVO brand to launch more products and expand into mass market segments at or below RMB 200,000.

Answer

CEO William Li explained a shift in global market expansion from a direct selling model to a partnership-based approach, with partners identified in over 10 countries. Firefly will be the first brand introduced overseas (Europe, Asia, Middle East, South America), followed by ONVO, and then NIO, reversing the order of brand launches in China. He stated that ONVO, defined as a family-oriented mass-market brand, aims for a long-term price bandwidth of RMB 100,000-300,000, offering diverse products. He confirmed plans to develop a new product platform targeting the price range below RMB 200,000 to capture market share in China's largest passenger vehicle segment.

Ming Hsun Lee from Bank of America inquired about NIO's overseas expansion strategy for the next few years, particularly in Europe, given the established sales channels. He also asked about future plans for the ONVO brand, specifically launching more mass-market products below CNY 200,000 to expand business opportunities.

Answer

William Li, Founder, Chairman, and CEO of NIO, explained a shift in overseas strategy from direct selling to a partnership-based model, identifying partners in over 10 countries. He stated that the Firefly brand would be the first to expand globally, followed by ONVO, and then NIO, reversing the domestic launch order. For the ONVO brand, Li confirmed its positioning for the mainstream family market, with plans to gradually expand its product line from CNY 100,000 to CNY 300,000, including developing a new platform for models below CNY 200,000 to capture the largest market segment in China.

Ming Hsun Lee of Bank of America sought confirmation on the new model pipeline for 2026, asking about five specific models. He also asked about operating expense control in 2026, requesting guidance for quarterly R&D expenses and the CapEx plan for 2025 and 2026.

Answer

Management, via a moderator, clarified that the 2026 focus will be on three large SUV models, with no major facelifts for the current 5 and 6 series and no second Firefly model planned for next year. For 2026, quarterly non-GAAP R&D expenses are projected to be between RMB 2 billion and RMB 2.5 billion. A precise 2026 CapEx plan was not provided, but the goal is to keep it at a level similar to 2025 or better.

Ming Hsun Lee of Bank of America inquired about user feedback on the new world model (NWM) for autonomous driving and its advantages. He also asked about the strategy to increase sales of the Envoy L60 and the outlook for the upcoming L80 and L90 models.

Answer

Management detailed that the NWM has improved active safety and provides a better point-to-point smart driving experience, with the in-house chip version rolling out in late June. For the Envoy brand, they highlighted organizational adjustments and the plan to leverage the battery swap network as a sales channel. The L90 is set to launch in Q3, with a target for the Envoy brand to reach 25,000 monthly deliveries in Q4.

Ming-Hsun Lee from Bank of America asked about NIO's strategy in Europe following the EU tariff increase and its impact on pricing and demand. He also requested details on the gross margin profile for the new ONVO brand.

Answer

CFO Stanley Qu acknowledged that EU tariffs have led to price increases and affected sales, but reiterated that NIO's European strategy is long-term, focusing on brand building and user satisfaction rather than short-term volume. For the ONVO brand, Qu stated that the initial gross margin is in the positive single digits. He guided for the ONVO vehicle margin to reach around 10% in 2025 as a baseline, with a target of 15% through cost improvements and new product introductions.

Ming-Hsun Lee from Bank of America inquired about the impact of EU tariffs on NIO's European pricing strategy and demand. He also asked for the gross margin profile of the ONVO brand for 2024 and its potential margin at higher production volumes.

Answer

CFO Stanley Qu acknowledged that EU tariffs have affected pricing and sales in Europe, leading to significant price increases. He emphasized that NIO's European strategy remains long-term, focusing on building its service network and brand awareness. For the ONVO brand, Qu stated that the initial vehicle margin is positive but in the single digits. For 2025, the company targets a baseline vehicle margin of around 10% for ONVO, with a goal of reaching 15% through cost improvements and an expanded product lineup.

Ming-Hsun Lee from Bank of America inquired about management's view on the potential growth rate and penetration of China's EV market over the next few years. He also asked for an update on the product pipeline for the mass-market Firefly brand, specifically regarding the number of models planned for 2025.

Answer

CEO William Li projected that China's NEV penetration rate, currently over 50%, could surpass 80% in the next 2-3 years, accelerated by the 'vicious cycle' of price cuts weakening traditional ICE brands. He also confirmed that products from the Firefly brand are on track for delivery starting in 2025 and that product preparation is proceeding smoothly.

Ming Hsun Lee asked for updates on Pony AI's robotaxi fleet size for 2025 and the outlook for 2026, including the deployment plan across different cities for new vehicles.

Answer

Chairman and CEO James Peng stated that Pony AI expects to outperform its 2025 target of 1,000 robotaxis and conservatively targets over 3,000 vehicles for 2026. This acceleration is driven by an 'upward spiral' where increased fleet density leads to shorter wait times, better user experience, higher utilization, and optimized pricing. He also highlighted the satellite model, collaborating with fleet managers like Sihu and Sunlight, to enable larger fleet deployment with less CapEx. Deployment will deepen in existing Tier 1 Chinese cities, especially after achieving city-wide unit economics break-even in Guangzhou, and expand into more domestic and overseas markets through local partnerships.

Ming Hsun Lee asked for updates on Pony AI's robotaxi fleet size for the current year and the outlook for 2026, including the deployment plan across different cities for new vehicles.

Answer

James Peng, Chairman and CEO, stated that Pony AI expects to outperform its previous target of 1,000 robotaxis by year-end and aims for over 3,000 vehicles in 2026. He attributed this acceleration to an 'upward spiral' driven by Gen-7 vehicles, leading to shorter wait times, better user experience, higher utilization, and improved pricing. Peng also highlighted the satellite model with partners like Sihu and Sunlight, enabling larger fleet deployment with less CapEx. The company plans to deepen operations in existing Tier 1 China markets and expand into more domestic and overseas cities through collaborations with local partners and governments.

Ming Hsun Lee of Bank of America inquired about PonyAI's production plan for its Gen 7 robotaxis throughout the remainder of 2025.

Answer

Chairman and CEO Jun Peng confirmed the company is firmly on track to surpass its 1,000+ vehicle fleet target by year-end, having already produced over 200 Gen 7 vehicles. Peng highlighted the achievement of a scalable production cycle, secured component supply, and a 70% reduction in bill of materials (BOM) cost compared to the previous generation. He also noted significant progress in unit economics, including lower insurance costs and improved remote assistance efficiency, expressing confidence in achieving positive unit economics for Gen 7 vehicles.

Ming Hsun Lee of Bank of America inquired about PonyAI's production plan for its Gen 7 robotaxis throughout the remainder of 2025.

Answer

Chairman, Co-Founder & CEO Jun Peng confirmed the company is on track to surpass its 1,000+ vehicle target by year-end, having already produced over 200 Gen 7 vehicles. He highlighted that the assembly lines for both BAIC and GAC models have reached the start of production (SOP) phase, supported by a secure component supply chain. Peng also emphasized the 70% reduction in bill of materials (BOM) cost for Gen 7 vehicles and improving unit economics through lower operational costs like insurance.

Ming Hsun Lee asked about WeRide's key competitive advantages and the future competitive landscape, given the increasing number of OEMs and ride-hailing companies planning to enter the robotaxi business. He followed up by asking if the volume of data and AI model development provide OEMs an edge in robotaxi, and whether a direct evolution from L2 to L4 is feasible.

Answer

CEO Tony Han emphasized the complexity of robotaxi development, highlighting WeRide's technological strengths in L4 and L2++ deployment, efficient data gathering, rapid iteration, and its core identity as an AI company. He noted the lack of successful public driverless robotaxi services from traditional OEMs or ride-hailing platforms. He further argued against a direct L2++ to L4 evolution, citing the absence of L3 strategies from major players like Tesla, and underscored the vast difference in difficulty between ADAS and driverless robotaxi operations.

Ming Hsun Lee asked about WeRide's key advantages and the future competitive landscape, given the increasing number of OEMs and ride-hailing companies planning to enter the robotaxi business. He followed up by asking if data and AI model development give OEMs an edge in robotaxi, and the feasibility of evolving from L2 to L4 autonomous driving.

Answer

CEO Tony Han highlighted WeRide's competitive advantages in technology (mass deployment of L4 and L2+ systems for efficient data gathering and generalizable algorithms), fast iteration capabilities, and its core as an AI company. He emphasized the difficulty for traditional OEMs or ride-hailing platforms to achieve driverless robotaxi operations. He further explained the significant difficulty of directly evolving from L2++ to L4, likening it to climbing a cliff, and noted that L3 strategies are often skipped. He stressed that OEMs lack the accumulated experience, simulation platforms, and rapid iteration capabilities of dedicated robotaxi companies like WeRide, suggesting a long path for them to catch up.

Ming Hsun Lee asked why XPENG chose to launch Robotaxi services in 2026, seeking insights into the underlying technology inflection points or cost reduction strategies. He also questioned XPENG's technological and business model advantages compared to other L4 autonomous driving competitors, and how management envisions Robotaxi's commercialization, including future milestones like fleet numbers, overseas rollout, and collaboration plans beyond AMAP.

Answer

Co-Founder, Chairman, and CEO Mr. He Xiaopeng explained that the 2026 Robotaxi launch aligns with concentrated inflection points in XPENG's full-stack self-development and cross-domain integration, enabling Robotaxi configuration, VOM for robotic cars, and VLA 2.0 for various driving modes. This approach addresses current Robotaxi challenges like high costs, mobility limitations, and LiDAR dependency. XPENG plans a dual launch of fully shared L4 and assisted L4 models. He also mentioned launching three different Robotaxi models next year, prioritizing smooth technological, operational, and business model execution, and expanding partnerships beyond AMAP to leverage their traffic, payment, and operational support, building a robust ecosystem globally.

Ming Hsun Lee asked about XPeng's decision to launch Robotaxi services in 2026, the underlying technology inflection points, cost reduction strategies, and competitive advantages over other L4 autonomous driving companies. He also inquired about the commercialization strategy, future milestones (fleet size, overseas rollout), and collaboration plans with AMAP and other partners.

Answer

He Xiaopeng, Co-founder, Chairman, and CEO of XPENG, attributed the 2026 Robotaxi launch to concentrated inflection points in full-stack self-development and cross-domain integration, enabling new capabilities with VOM and VLA 2.0. XPeng's approach addresses high costs and mobility limitations of current Robotaxis by not relying on HD maps or LiDAR. Three Robotaxi models will launch in 2026, with AMAP as a key partner for operational support. XPeng plans to build a 'toolbox' and open interfaces for global partnerships to quickly scale the ecosystem.

Ming Hsun Lee from Bank of America asked for guidance on future revenue from the expanded Volkswagen partnership and questioned Xpeng's robotaxi strategy, specifically regarding differentiated vehicles and the feasibility of L4 OTA updates for existing cars.

Answer

Charles Zhang, VP of Corporate Finance and Investments, explained the VW collaboration will create a third recurring revenue stream from EEA licensing once new ICE/PHEV models reach SOP. CEO He Xiaopeng added that L4-capable vehicles are planned for 2026 pilots, sharing a common source model with consumer cars but with different functionalities, and emphasized these vehicles would not require cloud takeover or hardware redundancy.

Ming-Hsun Lee from Bank of America asked for the 2025 export growth guidance, key growth regions, and the strategy for handling EU tariffs. He also questioned the adoption of the Turing chip, including which model would debut it and if cost savings would be shared with customers.

Answer

President Brian Gu highlighted strong international growth focusing on Europe, the Middle East, and Southeast Asia, and noted the company is exploring ways to mitigate EU tariffs. CEO He Xiaopeng added that the Turing chip is progressing well, with mass production in some models expected in Q3. He emphasized its superior computing power and the company's goal of democratizing technology, implying benefits for consumers.

Ming-Hsun Lee questioned if the technology gap in autonomous driving might narrow as more competitors adopt end-to-end models. He also asked how XPeng's self-developed 'Touring' chip will advance its AI capabilities beyond simple cost control and inquired about the 2026 commercialization plan for the humanoid robot.

Answer

Co-Founder, Chairman and CEO He Xiaopeng stated that a comprehensive full-stack capability including hardware and data loops creates a durable advantage that is difficult for competitors to replicate. He explained the Touring chip enables customization, better performance, and faster iteration. Regarding the humanoid robot, he noted its development is more challenging than AI cars, requiring L3-level AI to be useful, and confirmed progress is being made on motion and 'brain' capabilities.

Ming-Hsun Lee asked about the export sales outlook, including its expected revenue contribution and whether charging infrastructure poses a bottleneck for EV penetration in overseas markets. He also inquired about XPeng's production capacity for 2025 and any potential supply chain shortages.

Answer

President Brian Gu stated that overseas sales are expected to maintain a similar contribution percentage (around 15%) next year, with both BEV and future extended-range models finding growth opportunities in global markets. VP Charles Zhang addressed capacity, confirming that both the Guangzhou and another plant are on double shifts, each capable of 200,000-300,000 units annually. He noted there is ample room for low-capital expansion and that supplier capacity is also being expanded in line with XPeng's platform-based strategy.

Ming-Hsun Lee from Bank of America questioned the primary advantages of Zeekr's new super hybrid technology compared to existing PHEV and EREV technologies. He also asked about the expected sales volume increase from this new powertrain and whether it would be retrofitted to existing models or reserved for future ones.

Answer

CEO Cong Hui An explained that the super electric hybrid technology is distinct from the EM-P system used by Lynk & Co and is reserved for Zeekr's large-size products. He outlined its key advantages: consistent high performance regardless of battery charge, superior fuel efficiency, ultrafast charging via a 900-volt architecture with large battery packs (50-80 kWh), and significantly lower maintenance frequency and cost. Mr. An stated that the internal target for this powertrain is to contribute 150,000 to 200,000 vehicles in annual sales in the future.

Ming-Hsun Lee from Bank of America inquired about the primary advantages of Zeekr's new super hybrid technology over competitors. He also asked about the expected sales volume increase from these models and whether the technology would be retrofitted to existing vehicle lines.

Answer

CEO Cong Hui An explained that the super electric hybrid technology, distinct from Lynk & Co's EM-P system, offers superior performance regardless of battery charge, better fuel efficiency, and ultrafast charging with its 900-volt system. He also noted lower maintenance costs. He clarified the technology is for future large-size Zeekr models, not existing ones, and the internal target is for this powertrain to contribute 150,000 to 200,000 units annually in the future.

Ming-Hsun Lee asked about the autonomous driving and smart cabin technology strategy, specifically how it will be integrated between the Zeekr and Lynk & Co brands. He also inquired about the powertrain strategy, including the use of Super Hybrid vs. EM-P technology and the plan for phasing out internal combustion engine (ICE) vehicles.

Answer

Executive Cong Hui An stated that both brands will share a unified ADAS and infotainment platform for hardware and middleware, but with distinct HMI designs to maintain brand differentiation. On powertrain, the Zeekr brand will exclusively use the more advanced Super Hybrid technology, while Lynk & Co will continue with its EM-P platform, though many components are shared. He noted that while R&D on pure ICE vehicles is limited, they will be maintained to meet specific customer demand in domestic and international markets.