Li Auto (NasdaqGS:LI) Valuation Spotlight After Strong Li i6 Launch and Surging September Deliveries

Li Auto (NasdaqGS:LI) just rolled out its new five-seat electric SUV, the Li i6, at the end of September and quickly received over 20,000 orders in a matter of hours. In addition, the company reported delivering nearly 34,000 vehicles in September and over 93,000 for the third quarter, continuing to highlight its place in China's premium SUV landscape.

See our latest analysis for Li Auto.

The buzz around Li Auto’s new i6 SUV launch and pledge to cover buyer tax incentives has sparked fresh optimism, even as the company navigates tough competition and delivery swings. The share price has held steady this year, with short-term momentum muted following several months of delivery declines. Yet, over the past three years, Li Auto boasts a total shareholder return of 27%, reminding investors that its long-term story still shines amid short-term bumps.

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With shares currently trading below analyst price targets and the stock down over the past year, the big question now is whether Li Auto is undervalued or if the market is already factoring in its next stage of growth.

Most Popular Narrative: 15.4% Undervalued

At $24.80, Li Auto’s shares sit well below the most widely followed narrative’s fair value of $29.30. Analyst projections underpin this valuation gap, and the stage is set for bold growth assumptions ahead.

The company's ongoing transition from extended-range vehicles (EREVs) to pure battery electric vehicles (BEVs), including successful launches of the Li MEGA and Li i8, and the upcoming Li i6, positions Li Auto to capture expanding market share as Chinese middle-class consumers upgrade and EV adoption accelerates. This directly supports long-term revenue growth and total addressable market expansion.

Read the complete narrative.

Want to know why this target price breaks away from the pack? The foundation includes sharply rising earnings, a premium profit multiple, and game-changing new model launches. See what specific numbers and long-range bets give this narrative its bullish edge.

Result: Fair Value of $29.30 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, concerns remain around heavy R&D spending and rising domestic competition. Both factors could pressure margins and stall Li Auto’s ambitious growth outlook.

Find out about the key risks to this Li Auto narrative.

Build Your Own Li Auto Narrative

Prefer to challenge the consensus or dig into the numbers on your own? Craft your perspective and see how quickly you can build it out, then Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Li Auto.

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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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