Li Auto (NASDAQ: LI) Faces EV Market Challenges Despite New Product Strategy
- US Tiger Securities lowered its Li Auto price target from $22 to $16 while maintaining a Buy rating.
- Li Auto reported a second-quarter net loss of RMB1.7 billion, compared with net income of RMB1.1 billion a year earlier.
- Revenue declined 15.1%, while vehicle deliveries fell 11.5% to 98,330 units.
- Management expects refreshed battery-electric vehicles and international expansion to support future growth.
Li Auto (NASDAQ: LI) is a Chinese new-energy vehicle manufacturer specializing in premium extended-range and battery-electric vehicles. As of July 31, 2026, the company operated 490 retail stores, 536 service centers and authorized repair shops, and 4,141 supercharging stations across China.
On August 26, 2026, US Tiger Securities analyst Bo Pei lowered the firm’s price target for Li Auto from $22 to $16 while maintaining a Buy rating. Based on a share price of approximately $12.23, the target represented potential upside of about 30.8%. The reduction reflected weaker near-term expectations for vehicle sales and profit margins.
Li Auto reported a second-quarter net loss of RMB1.7 billion, compared with net income of RMB1.1 billion in the same period last year. However, the loss narrowed from RMB2.3 billion in the first quarter of 2026.
Total revenue fell 15.1% year over year to RMB25.7 billion, while vehicle deliveries declined 11.5% to 98,330 units. Li Auto attributed the lower vehicle-sales revenue to fewer deliveries and a lower average selling price caused by changes in its product mix. Its gross margin fell to 11.0% from 20.1% a year earlier but improved from 7.9% in the previous quarter.
Management expects refreshed battery-electric models and the upcoming Li i9 to improve its product mix and margins during the second half of 2026. The company also plans to expand its global presence. For the third quarter, Li Auto expects deliveries of 95,000 to 100,000 vehicles and revenue of RMB26.6 billion to RMB28.0 billion.
