Abstract
The new energy vehicle industry is currently experiencing robust growth, with numerous companies actively engaged in various business activities of the industrial chain. Recognizing its potential, the Chinese government has placed significant emphasis on the new energy vehicle industry, considering it a key driver of economic growth. Focusing on the financial reports from 2021 to 2023 for Li Auto Inc., this essay employs the Harvard Analysis Framework to comprehensively assess the company's financial landscape, encompassing strategic, accounting, finance, and future prospects. Employing the strategic model, which involves a PEST and SWOT analysis for Li Auto, along with a detailed examination of key accounting and financial data, the findings indicate that the company's solvency, while on average, displayed a declining trend, and its profitability was less than stellar. However, the operating ability exhibited a favorable condition. The recommended solutions for addressing the company's challenges primarily revolve around internal management strategies, emphasizing the reduction of operating expenses, enhancement of profitability, and the cultivation of a technological competitive advantage. These measures aim to improve the company's financial performance and overall development in the dynamic landscape of the new energy vehicle industry.
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