In the latest trading session, Li Auto Inc. Sponsored ADR (LI) closed at $23.75, marking a -4.62% move from the previous day.
JPMorgan analyst Nick Lai cut his rating on Li Auto stock to Hold from Buy. He is worried about slowing demand.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Li Auto Inc. Sponsored ADR (LI) closed at $26.45 in the latest trading session, marking a -3.4% move from the prior day.
The latest trading day saw Li Auto Inc. Sponsored ADR (LI) settling at $29.59, representing a -2.73% change from its previous close.
In the latest trading session, Li Auto Inc. Sponsored ADR (LI) closed at $31.8, marking a +1.4% move from the previous day.
Li Auto faces fierce competition and delivery guidance cuts, but its fundamentals are very strong relative to peers. The company is soon to roll out its new BEV model, I8, that will debut an improved "smart-driving" system. Product innovation, particularly with "smart-driving" slightly lagging peers like XPeng and Huawei, could be a cause of the current lagging sales and is an important catalyst moving forward.
Li Auto is well-positioned in China's premium EV market, supported by resilient margins, strong cash reserves, and a growing retail network. Government intervention to curb price wars and support innovation should stabilize the sector, benefiting Li Auto's high-end focus and long-term prospects. Short-term sales declines reflect cautious Chinese consumers and price competition, but sector maturation and economic recovery should revive high-end demand.
LI faces a similar headwind as that of its peers, with the suspended EV trade-in subsidy already triggering demand headwinds in early July 2025. This is worsened by the untimely "temporary sales system upgrade," with it already triggering the FQ2'25 delivery miss against the prior guidance. Thanks to its high-growth cadence, LI remains attractively valued compared to historical trends and its peers, despite the risks from intensifying domestic competition.
Li Auto Inc. Sponsored ADR (LI) closed the most recent trading day at $27.66, moving +1.69% from the previous trading session.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Whether it's because you want to look at guaranteed income from your investments or you want to diversify your portfolio, dividends are becoming more of the norm for investors.