Li Auto Terminates Contracts with Students Due to Business Adjustment

On Wednesday, some users revealed on Maimai and other platforms that Chinese automaker Li Auto had broken off some contracts in May to enroll students who will graduate in the summer this year. Many students had signed tripartite agreements with Li Auto and the school, and were ready to work after their graduation.

The company responded to local media outlet Sina Tech that some business adjustments were being made which meant that some posts had been eliminated, particularly those involving some on-campus students who had not yet joined this year. In view of the inconvenience that may be caused to these students with the job loss, Li Auto is helping with job transfers and compensation and is currently in contact with students involved in the matter.

According to Sina Tech, the business adjustments that occurred at Li Auto mainly involved the in-house camera research and internal systems departments. As for the number of students involved, Li Auto replied that the company would not comment on  “the specific number for the time being”.

Li Auto released its unaudited financial report for Q1 of 2022 on Tuesday. The report shows that the company garnered a total revenue of 9.56 billion yuan ($1.42 billion), a net loss of 10.9 million yuan and a net profit of 471.1 million yuan on a non-GAAP basis.

SEE ALSO: Li Auto’s Revenue in First Quarter Tops $1.42 Billion

At the financial report performance meeting, Li Auto‘s executives also addressed some consumer questions. Shen Yanan, Executive Director and President of Li Auto, said that the increase in raw material prices had been taken into account when the price of the 2021 version of Li ONE was adjusted on April 1. At present, there is no need to further adjust the price for the foreseeable future.

Li Xiang, Founder, Chairman and CEO of Li Auto, introduced the product planning of Li Auto at the performance meeting, and compared its product plan to that of Apple’s iPhone, that is, launching a series of different products at different price points to accurately meet different consumer needs.

Li Xiang stated that the company will launch three new products by next year, aside from the already-released L9, including a new generation of range-extended flagship products, new BEV high-voltage platform products, and the company’s first medium-sized car with a price of 200,000 yuan to 300,000 yuan ($29,757-44,636).