Analysts at Goldman Sachs and Piper Sandler lowered their price targets for Li Auto (LI) stock, citing ongoing challenges at the Chinese electric vehicle (EV) maker. The company recently reported dismal Q3 results amid intense competition in the domestic market. Meanwhile, LI stock was down 3.4% on Monday at the time of writing, as the company reported a 32% year-over-year fall in its November deliveries to 33,181 units, marking the sixth consecutive month of decline.
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In contrast, Nio (NIO) deliveries surged 76.3% year over year to 36,275 vehicles, and XPeng (XPEV) reported about a 19% increase in November deliveries to 36,728 units.
Goldman Sachs, Piper Sandler Lower LI Stock Price Target
Goldman Sachs analyst Tina Hou lowered the price target for Li Auto stock to $27 from $30.90, while reiterating a Buy rating. Hou noted that Li Auto missed Q3 expectations due to increased operating expenses and a one-time recall cost. The analyst lowered her 2025 to 2027 earnings estimates to reflect the recall cost and lower gross margin related to the slower-than-anticipated ramp-up of i6 production due to battery shortage.
That said, Hou remains bullish on LI stock, as she believes that Q3 was a “trough” for the company in terms of profit and margins. She expects volume and revenue to rebound in 2026, mainly driven by the company’s refreshed L Series models. Hou expects 34% year-over-year volume growth to 539,000 vehicles in 2026, fueled by revamped L7/L8/L9 models and full-year delivery of i6 and i8 models. Given the expectation of higher volumes, Hou expects unit profit to double from RMB 6,200 in 2025 to RMB 12,800 in 2026. Further, she expects the EBIT (earnings before interest and taxes) margin to improve to 3.0% in 2026 from an estimated -0.5% in 2025, supported by economies of scale and continued cost-reduction initiatives.
Meanwhile, Piper Sandler analyst Alexander Potter lowered his price target for Li Auto stock to $18 from $19 and reaffirmed a Hold rating. Potter noted that Li Auto is undergoing a “difficult transition” amid a new policy environment. The 5-star analyst added that the launch of fully electric vehicles (battery EVs) to complement Li Auto’s portfolio of electric range-extended vehicles (EREVs) is causing supply chain mix-ups, margin pressures, and lower deliveries (Q3 deliveries declined by 39% year over year).
Additionally, Potter highlighted that Li Auto’s cash flow has turned negative due to steep R&D spending, lower payables, and a warranty claim. The analyst contended that while there is an expectation that the new products, mainly the i6, will drive 2026 deliveries higher, he lowered his price target primarily due to margin concerns.
Is Li Auto a Good Stock to Buy?
Wall Street is currently sidelined on Li Auto stock, with a Hold consensus rating based on seven Holds, three Buys, and one Sell recommendation. The average LI stock price target of $22.56 indicates 27.1% upside potential.
