Jefferies analyst Xiaoyi Lei downgraded Li Auto (LI) stock to Hold from Buy and lowered the price target to HK$68.30 ($17.50) from HK$112.80 ($28.80), citing intense competition. Li Auto’s U.S.-listed shares have declined 27% over the past year, as the Chinese electric vehicle (EV) maker struggled due to its aging L series lineup, intense competition in the domestic market, impact of price wars on margins, and the underwhelming response to the Li i8 SUV model.
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Li Auto’s deliveries declined about 19% to 406,343 vehicles in 2025.
Jefferies Downgrades Li Auto Stock to Hold
Lei explained that he downgraded his rating for Li Auto due to growing rivalry in the family SUV segment. In fact, the 4-star analyst thinks that Huawei’s robust product cycle in 2026 could further weigh on Li Auto’s EREV (extended-range electric vehicle) lineup.
While the rollout of Li Auto’s first artificial intelligence (AI) glass marks the company’s initial move into AI hardware, Lei contends that “meaningful commercialization” of broader AI projects may take time.
Given Li Auto’s “light” product cycle and broader challenges in the industry, Lei believes that 2026 will likely be a transition year for the company.
Is Li Auto Stock a Buy, Sell, or Hold?
Amid the ongoing challenges, Wall Street has a Hold consensus rating on Li Auto stock based on nine Holds, two Buys, and one Sell recommendation. The average LI stock price target of $20.51 indicates 23.1% upside potential.
