Will July Deliveries Milestone Shift Li Auto's (LI) Market Share and Innovation Narrative?

• Li Auto reported that it delivered 30,731 vehicles in July 2025, bringing total cumulative deliveries to 1,368,541 as of July 31, 2025.
• This delivery update underscores Li Auto’s ongoing execution in growing its sales volumes and reaching major operational milestones within the electric vehicle sector.
• We'll now explore what Li Auto's July deliveries signal for its future market share ambitions and ongoing innovation efforts.

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Li Auto Investment Narrative Recap

To be a long-term shareholder in Li Auto, one needs to believe in the company’s ongoing advancement in China’s new energy vehicle market and its ability to grow sales despite rising competition and pricing pressures. July’s delivery numbers reaffirm Li Auto’s near-term focus on volume growth, but do not materially change the most immediate catalyst: the market reception and sustained demand for newly launched battery electric models. The challenge of maintaining healthy margins in a competitive pricing environment remains a key risk.

The official launch of the Li i8 SUV at the end of July connects directly to the recent delivery report, providing insight into the company’s push into premium battery electric vehicles. This new family SUV is equipped with advanced assisted driving features, underlining Li Auto’s innovation efforts and its long-term strategy to attract higher-value customers and potentially bolster overall sales volumes.

However, even as deliveries trend higher, investors should keep a close watch on the company’s ability to defend its profit margins given...

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

Li Auto's narrative projects CN¥253.6 billion in revenue and CN¥17.4 billion in earnings by 2028. This requires 20.6% yearly revenue growth and a CN¥9.3 billion earnings increase from the current CN¥8.1 billion.

Uncover how Li Auto's forecasts yield a $34.06 fair value, a 37% upside to its current price.

Exploring Other Perspectives

Five fair value estimates from the Simply Wall St Community range from US$26.99 to US$34.06 per share. With margins under pressure from competitive pricing, you’ll want to see how differing opinions interpret the company’s next results.

Explore 5 other fair value estimates on Li Auto - why the stock might be worth as much as 37% more than the current price!

Build Your Own Li Auto Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Li Auto research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Li Auto research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Li Auto's overall financial health at a glance.

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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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