Balanced Outlook for Li Auto Amid Competitive Pressures and Strategic Opportunities

Analyst Jeff Chung of Citi maintained a Hold rating on Li Auto, retaining the price target of $25.60.

Jeff Chung has given his Hold rating due to a combination of factors influencing Li Auto’s current market position. The launch of the i6 model, a five-seat BEV SUV, presents a competitive offering with its spacious design and attractive pricing, particularly with the limited-time discounts available before the end of October 2025. Despite these positive attributes, the necessity of additional payment for the 4-wheel-drive version could be seen as a drawback for potential buyers.
Additionally, while the i6’s sales are projected to be strong, with estimates of mature monthly sales reaching 9-10k units, the intense competition within the industry could potentially limit its market cycle. Furthermore, the anticipated expiration of trade-in subsidies across several Chinese provinces by year-end is expected to temporarily boost demand, yet this may not sustain long-term growth. These factors collectively contribute to the Hold rating, reflecting a balanced view of potential opportunities and challenges facing Li Auto.