Li Auto downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs analyst Tina Hou downgraded Li Auto (LI) to Neutral from Buy with a price target of $19, down from $24, post the Q4 report. Li issued 2026 guidance below expectations for volume and gross margins, the analyst tells investors in a research note. Goldman expects the company to enter two quarters of widening net profit loss with “lackluster” volume growth and “depressed” vehicle gross margins. This is due to a by lack of new model launches, raw material and memory cost inflation, and LI’s higher mix of the low-margin i6, contends the firm.