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Li Auto Inc.·4

Jun 17, 9:07 AM ET

Xie Yan 4

Research Summary

AI-generated summary

Updated

Li Auto CTO Xie Yan Receives 5M RSUs, Exercises Options

What Happened

  • Xie Yan, Chief Technology Officer of Li Auto Inc. (LI), had restricted share units (RSUs) vest and settle on June 15, 2026 and executed related derivative transactions. According to the Form 4:
    • 5,000,000 RSUs were granted/settled (A) at $0.00 (vested and acquired).
    • 200,000 derivative units were reported as acquired on exercise/conversion (M) at $0.00.
    • 200,000 derivative units were reported as disposed on exercise/conversion (M) at $0.10 generating $20,000.
    • 96,588 Class A ordinary shares (in the form of ADSs) were sold (F) at $7.21 to cover income tax withholding, producing $696,399.
  • Net based on the reported entries: 5,200,000 shares acquired and 296,588 shares disposed (net increase of 4,903,412 shares from these transactions as reported).

Key Details

  • Transaction date: June 15, 2026; Form filed June 17, 2026 (timely — within the usual 2‑business‑day window).
  • Prices and proceeds: tax-withholding sale 96,588 ADSs @ $7.21 = $696,399; derivative disposal 200,000 @ $0.10 = $20,000.
  • Shares owned after transaction: Not specified in the provided excerpt of the filing.
  • Notable footnotes:
    • F1/F3/F4: The 5,000,000 items were RSUs that vested and represent rights to receive Class A ordinary shares; they have no expiration date.
    • F2: The 96,588 shares sold were Class A ordinary shares in the form of ADSs sold under a sell‑to‑cover to satisfy tax liabilities.
    • F5: Some options referenced vest only upon achievement of tiered targets (see issuer disclosures).
    • F6: Each ADS represents two Class A ordinary shares (important when comparing ADS vs. ordinary share counts).

Context

  • This was largely a vesting/settlement event (RSUs) with a routine sell‑to‑cover to pay withholding taxes. The filing shows option/derivative activity (exercises/conversions) and a small related sale; such cashless or sell‑to‑cover actions are common when RSUs vest and do not necessarily indicate a vote of confidence or lack thereof by the insider.
  • For retail investors: purchases or net increases in holdings can be more informative than routine tax‑withholding sales. Here, Xie’s reported activity resulted in a large net increase in share exposure due to the RSU settlement.