Is the Li i8 Launch and Charging Expansion Changing the Investment Case for Li Auto (LI)?

Simply Wall St
  • In June 2025, Li Auto reported deliveries of 36,279 vehicles, bringing year-to-date cumulative deliveries to 1.34 million units, and announced the upcoming launch of its first pure electric SUV, the Li i8, at the end of July.
  • The company is also expanding its supercharging network to over 2,800 stations, preparing to compete more directly with NIO’s Onvo L90 in China's battery electric vehicle market.
  • We’ll examine how the Li i8’s debut and expanded charging network could reshape Li Auto’s investment narrative and future direction.

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Li Auto Investment Narrative Recap

For investors to back Li Auto, they need to believe the company can maintain innovation-led sales growth while fending off stronger domestic competitors and protecting margins. The headline news of over 36,000 June deliveries and the upcoming Li i8 launch add visibility to the key near-term catalyst, success in the battery electric SUV segment, yet do not materially diminish the core risk: pressure on margins from pricing and intense competition.

Among Li Auto’s recent moves, the company’s expansion to 2,800-plus supercharging stations closely aligns with its push into pure electric vehicles. This network could support adoption of the new Li i8, reinforcing charging convenience as a differentiator, but may also require significant investment that tests balance-sheet flexibility if sales momentum falters.

However, against this promise of technological expansion, investors should be aware of persistent risks around ...

Read the full narrative on Li Auto (it's free!)

Li Auto's narrative projects CN¥258.4 billion revenue and CN¥19.3 billion earnings by 2028. This requires 21.4% yearly revenue growth and a CN¥11.3 billion increase in earnings from the current CN¥8.0 billion.

Uncover how Li Auto's forecasts yield a $34.03 fair value, a 23% upside to its current price.

Exploring Other Perspectives

LI Community Fair Values as at Jul 2025

Simply Wall St Community members have set fair values for Li Auto between CN¥26.99 and CN¥34.03, based on five unique approaches. While these diverse opinions reflect uncertainty, continued margin pressure from rising competition is a central theme affecting future results.

Explore 5 other fair value estimates on Li Auto - why the stock might be worth as much as 23% more than the current price!

Build Your Own Li Auto Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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