Battery Electric Vehicles And Intelligent Driving Will Unlock Markets

Li Auto's analyst price target has decreased slightly from approximately $29.30 to $28.87 per share. This adjustment reflects a cautious outlook amid tempered growth expectations and rising competitive pressures, according to recent analyst commentary.

Analyst Commentary

Recent Street research on Li Auto reflects a shifting landscape of opinions, as analysts weigh the company's prospects amid industry changes and competitive dynamics. Below is a summary of the prevailing bullish and bearish perspectives based on their recent reports and ratings.

• Bullish analysts highlight Li Auto's potential for near-term rebound. Some have upgraded ratings and cited opportunities for share price appreciation, supported by price targets above the current average.
• Expectations are that new product launches, particularly the i6, could act as catalysts if they resonate well with consumers and achieve strong sales volumes.
• The company's brand positioning and execution within China's premium electric SUV segment are seen as supporting long-term growth, assuming demand remains robust.

• Bearish analysts have cited rising competitive pressure and a crowded battery electric market as significant headwinds that are likely to weigh on Li Auto's near- and mid-term outlook.
• Concerns over soft Q3 sales and cautious delivery guidance have led to a series of downward revisions in price targets, with some expecting further contraction if growth fails to accelerate.
• Recent reductions to volume and earnings estimates signal skepticism around management’s ability to deliver sustained expansion, particularly as government subsidies approach expiration and sector dynamics rapidly evolve.
• Profit margins are expected to come under pressure, especially as the company expands into battery electric vehicles, which are typically lower margin compared to its traditional offerings.

What's in the News

• Li Auto officially launched the Li i6, a five-seat battery electric SUV. Deliveries are set to begin on September 27, 2025. The i6 is priced at RMB249,800 for its standard configuration. (Key Developments)
• Li Auto was dropped from the S&P International 700 and S&P Global 1200 indices. (Key Developments)
• The company provided its third quarter 2025 guidance, forecasting deliveries between 90,000 and 95,000 vehicles and revenues between RMB 24.8 billion and RMB 26.2 billion. Both figures represent year-over-year decreases of over 37%. (Key Developments)
• Li i8, a six-seat battery electric family SUV, was officially launched. It features a new high-voltage platform, proprietary electric drive system, and advanced super charging battery technology. (Key Developments)
• Rival XPeng plans international expansion of its Mona brand, signaling increasing competition in the Chinese EV market, which includes publicly traded contenders like Li Auto. (CNBC via Periodicals)

Valuation Changes

• Consensus Analyst Price Target has decreased slightly to $28.87 per share, down from $29.30.
• Discount Rate has risen marginally to 12.11%, up from 11.87% previously.
• Revenue Growth projections have edged down to 17.10%, compared with the earlier estimate of 17.43%.
• Net Profit Margin has moved lower to 6.51%, down from the previous value of 6.53%.
• Future P/E ratio is nearly flat at 20.22x, compared with 20.20x prior.