Chinese EV billionaire Li Xiang embraces extreme frugality despite $4.3B fortune

A recent video that went viral on Chinese social media showed Li and his wife, Wang Lei, at a second-hand electronics shop in Beijing’s Shunyi District, where Wang was negotiating the sale of their old phones. Li, 44, sat quietly beside her, both dressed casually and unaccompanied by assistants or security staff, according to QQ.

This wasn’t Li’s first time trending online for his low-key habits. Just weeks earlier, he was spotted alone at a Sam’s Club pushing a grocery cart with one hand while answering work calls with the other. He is also frequently seen taking his five children to parks by himself.

Li Xiang, founder and CEO of Chinese electric vehicle company Li Auto. Photo from X

He once said on national television that he personally approves all company expenses, even those as small as 20,000 yuan (US$2,800).

His personal frugality directly influences how he manages his company, with many seeing this trait as a key factor in Li Auto’s success as the first Chinese EV maker to turn a profit.

"Even with over 100 billion yuan in revenue, we still keep a tight budget. In the early days, raising capital was extremely difficult, so we learned to spend every yuan wisely," Li said.

In 2019, as Li Auto prepared to launch its first model, the Li ONE, the company faced a severe cash shortage. Li approached 150 investors but was rejected by all, a setback that has since made him deeply focused on cash-flow discipline.

This "stinginess" has paid off. Li once revealed that Li Auto’s branding and marketing costs account for only 0.6% of revenue, far lower than the 2–3% industry average. He even models for the company’s ads to avoid paying celebrity endorsement fees.

In 2024, Li Auto recorded 144.5 billion yuan in revenue and 8 billion yuan in net profit, maintaining profitability for nine consecutive quarters.

However, Li spares no expense when it comes to research and development. In January, the company opened its first overseas R&D center in Munich, Germany, marking a major step toward globalizing its R&D strategy, according to CnEVPost. Li Auto currently dedicates nearly half of its R&D investment to the development and application of AI technologies, aiming to build a comprehensive system.

Li has emphasized that Li Auto’s mission is to connect the physical, visual, and digital worlds as well as becoming a global leader in AI, as reported by ChinaEVHome.

"Building cars is just the process—Li Auto’s future is as a robotics company," Li said during the launch of the Li i8 in July.