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Investing.com - Macquarie downgraded Li Auto (NASDAQ:LI) from Neutral to Underperform on Friday, while lowering its price target to $21.00 from $28.00. According to InvestingPro data, Li Auto maintains a GREAT financial health score, with strong profitability metrics including a 20.5% gross margin.
The downgrade comes as Macquarie expects Li Auto’s second-quarter sales and profits to miss consensus estimates, with third-quarter volumes also trending weaker than Street forecasts. The company’s upcoming earnings report, scheduled for August 28, will be crucial in validating these concerns. InvestingPro analysis suggests the stock is currently undervalued, with 8 additional exclusive insights available to subscribers.
Macquarie identified the upcoming September launch of Li Auto’s i6 BEV as a key near-term catalyst, noting the vehicle will face competition from popular electric SUVs like the Model Y and YU7.
The firm lowered its volume estimates for Li Auto and reduced its FY26 price-to-earnings ratio to the two-year average of 13.0x.
Li Auto, a Chinese electric vehicle manufacturer, has been expanding its product lineup to include both extended-range electric vehicles and battery electric vehicles as it competes in China’s increasingly crowded EV market.
In other recent news, Li Auto has adjusted its delivery outlook for the second quarter, now expecting to deliver approximately 108,000 vehicles, down from its previous guidance of 123,000 to 128,000 vehicles. The company cited a temporary impact from a sales system upgrade as the reason for this revision, which it claims is essential for supporting long-term growth. In a separate development, Bernstein downgraded Li Auto’s stock rating from Outperform to Market Perform, citing rising competition in the premium PHEV SUV segment. The company’s market share in this category has dropped from 72% in Q2 2023 to 34% in Q2 2025, according to Bernstein’s analysis.
Meanwhile, Li Auto has launched its new Li i8 electric SUV, featuring a 5C super charging battery capable of adding 500 kilometers of range in just 10 minutes. The i8 will begin deliveries on August 20, 2025, and is available in three trims priced between RMB321,800 and RMB369,800 ($44,400-$51,000). UBS has reaffirmed its Buy rating on Li Auto, viewing the i8’s debut as a positive catalyst for the company. Additionally, the pre-sale price range for the i8 aligns with market expectations, with more details set to be announced on July 29.
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