As previously reported, Macquarie analyst Eugene Hsiao downgraded Li Auto (LI) to Underperform from Neutral with a price target of $21, down from $28, citing rising competitive pressures. Li looks set to miss “lagging” sell-side Q2 estimates for volume and revenue, while the Q3 consensus volume estimate of 139,000 units “appears stretched,” the analyst tells investors. In addition, management needs to provide a clear strategy on how to reset growth ahead of the launch of the i6 in September, which will be competing directly with “best-sellers” like the Tesla (TSLA) Model Y and Xiaomi YU7, the analyst says.
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