Li Auto (LI) AI Stock Analysis

• Market Cap: $25.14B
• Dividend Yield: N/A
• Average Volume (3M): 5.51M
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.82
• Revenue Growth: 7.49%
• EPS Growth: -21.06%
• Country: US
• Employees: 32,248
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Auto - Manufacturers
• EPS (TTM): 0.19
• Shares Outstanding: 892,535,100
• 10 Day Avg. Volume: 4,759,179
• 30 Day Avg. Volume: 5,506,131
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 0.64
• Enterprise Value/Ebitda: 1.85
• 1Y Price Target: $25.92
• Price Target Upside: -0.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 74 Outperform
• Price Target: $29.00 ▲(10.81% Upside)

Li Auto's overall stock score is driven by strong financial performance and strategic investments in AI and infrastructure, which support long-term growth. However, technical analysis and valuation present mixed signals, and short-term challenges such as revenue decline and negative free cash flow pose risks.

Positive Factors

Revenue Growth

Strong vehicle deliveries and revenue growth indicate robust market demand and effective sales strategies, enhancing long-term financial stability.

Product Innovation

The launch of new models like the Li i6 showcases Li Auto's commitment to innovation and expanding its product lineup, strengthening its market position.

Charging Network Expansion

Expanding the charging network enhances customer convenience and supports the adoption of electric vehicles, reinforcing Li Auto's competitive edge.

Negative Factors

Revenue Decline

A decline in revenue year-over-year may signal challenges in maintaining growth momentum, potentially impacting future profitability.

Negative Free Cash Flow

Negative free cash flow indicates financial strain and could limit the company's ability to invest in growth opportunities or manage debt effectively.

Sales System Adjustments

Adjustments in sales systems can disrupt short-term sales performance, potentially affecting customer satisfaction and market share.

Li Auto Business Overview & Revenue Model

Company Description

Li Auto Inc. operates in the energy vehicle market in the People's Republic of China. It designs, develops, manufactures, and sells premium smart electric vehicles. The company's product line comprises MPVs and sport utility vehicles. It offers sales and after sales management, and technology development and corporate management services, as well as purchases manufacturing equipment. The company offers its products through online and offline channels. The company was formerly known as Leading Ideal Inc. and changed its name to Li Auto Inc. in July 2020. Li Auto Inc. was founded in 2015 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Li Auto generates revenue primarily through the sale of its electric vehicles, particularly its Li ONE model, which is a premium extended-range electric SUV. The company's revenue model includes direct sales to customers, leveraging both physical retail locations and an online sales platform. In addition to vehicle sales, Li Auto may derive additional income from after-sales services, such as maintenance and repairs. The company also benefits from government incentives and subsidies for electric vehicle manufacturers, which help offset production costs and make their vehicles more competitive in the market. Strategic partnerships with technology providers and suppliers further enhance Li Auto's product offerings and operational efficiency, contributing to its overall revenue stream.

Li Auto Financial Statement Overview

Summary

Li Auto demonstrates strong financial performance with robust revenue growth, improved profitability, and solid cash flow generation. The balance sheet is stable with a healthy equity base and moderate leverage. However, significant investing cash outflows present potential risks.

Income Statement

Li Auto has demonstrated robust revenue growth, transitioning from negative income to positive net income over recent years. The gross profit margin has been consistently strong, indicating effective cost management. The net profit margin improved significantly, showcasing enhanced profitability. EBIT and EBITDA margins are healthy, reflecting solid operating performance. Continued revenue growth and profitability enhance the company's competitiveness in the auto manufacturing sector.

Balance Sheet

The balance sheet of Li Auto shows a solid equity base with a strong equity ratio, suggesting financial stability. The debt-to-equity ratio is moderate, highlighting a balanced leverage approach. Return on equity has improved as profitability increased, indicating efficient use of shareholder capital. The company's asset base is expanding, supporting future growth, while maintaining a healthy level of liabilities relative to assets.

Cash Flow

Li Auto's cash flows are strong, with consistent growth in operating cash flow and free cash flow, indicating efficient cash generation. The free cash flow to net income ratio is favorable, highlighting the company's ability to convert income into cash. The operating cash flow to net income ratio improved, reflecting better operational efficiency. However, significant investing cash outflows present potential risks if not managed carefully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	144.75B	144.46B	123.85B	45.29B	27.01B	9.46B
Gross Profit	29.69B	29.66B	27.50B	8.79B	5.76B	1.55B
EBITDA	10.30B	12.56B	9.21B	-839.16M	500.83M	199.03M
Net Income	8.09B	8.03B	11.70B	-2.01B	-321.45M	-151.66M
Balance Sheet
Total Assets	161.85B	162.35B	143.47B	86.54B	61.85B	36.37B
Cash, Cash Equivalents and Short-Term Investments	110.68B	112.81B	103.26B	56.51B	47.52B	28.64B
Total Debt	16.36B	16.34B	13.55B	12.26B	7.84B	2.11B
Total Liabilities	89.53B	91.03B	82.89B	41.35B	20.78B	6.57B
Stockholders Equity	71.82B	70.87B	60.14B	44.86B	41.06B	29.80B
Cash Flow
Free Cash Flow	9.84B	8.20B	44.19B	2.25B	4.90B	2.46B
Operating Cash Flow	17.57B	15.93B	50.69B	7.38B	8.34B	3.14B
Investing Cash Flow	-49.00B	-41.14B	-12.07M	-4.36B	-4.26B	-18.74B
Financing Cash Flow	-539.50M	-415.65M	185.38M	5.64B	16.71B	24.71B

Li Auto Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.17
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LI, the sentiment is Positive. The current price of 26.17 is above the 20-day moving average (MA) of 23.99, above the 50-day MA of 25.94, and above the 200-day MA of 25.69, indicating a bullish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 60.88 is Neutral, neither overbought nor oversold. The STOCH value of 90.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LI.

Li Auto Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LI	74 Outperform	$25.14B	24.84	11.91%	―	7.49%	-21.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
XPEV	55 Neutral	$20.24B	―	-13.34%	―	66.53%	48.17%
NIO	51 Neutral	$12.85B	―	-329.46%	―	9.60%	-5.91%
RIVN	49 Neutral	$16.33B	―	-54.42%	―	2.73%	45.63%
VFS	44 Neutral	$7.58B	―	36.15%	―	79.49%	-22.72%
LCID	43 Neutral	$5.92B	―	-54.39%	―	39.01%	7.12%

Li Auto Corporate Events

Li Auto Releases 2025 Interim Report

On September 8, 2025, Li Auto Inc. released its interim report for the first six months of the fiscal year ending December 31, 2025. This report is a regulatory requirement for companies listed on The Stock Exchange of Hong Kong Limited. The release of this interim report is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction for the first half of the year, potentially impacting investor confidence and market positioning.

Li Auto Reports Stable Share Structure for August 2025

On September 4, 2025, Li Auto Inc. submitted a monthly return form to the Stock Exchange of Hong Kong, detailing the movements in their authorized share capital and issued shares for August 2025. The report shows no changes in the number of authorized or issued shares, indicating stability in their equity structure. This stability may reflect the company’s steady market position and could reassure stakeholders about the company’s financial health.

Li Auto’s August 2025 Vehicle Deliveries and Upcoming Launches

In August 2025, Li Auto delivered 28,529 vehicles, bringing its total deliveries to 1,397,070 by the end of the month. The company plans to launch the Li i6, a battery electric SUV, in September 2025, alongside the release of OTA 8.0, which will introduce new features to its existing vehicle models. Li Auto continues to expand its retail and service network across China, with 543 retail stores and 3,190 supercharging stations. These developments are likely to strengthen Li Auto’s market position and enhance its service offerings, potentially impacting its competitive stance in the new energy vehicle industry.

Li Auto Reports Stable Share Movements for July 2025

On August 6, 2025, Li Auto Inc. submitted a monthly return form to The Stock Exchange of Hong Kong Limited, detailing the movements in its authorized share capital and issued shares for July 2025. The report indicated no changes in the number of authorized or issued shares during this period, maintaining a stable financial position. This stability in share movements suggests a steady operational phase for Li Auto, potentially reinforcing investor confidence and supporting its market positioning as a reliable player in the electric vehicle sector.

Li Auto Unveils Li i8 Electric Family SUV

On July 29, 2025, Li Auto Inc. launched the Li i8, a six-seat battery electric family SUV, marking a significant advancement in their product lineup. The Li i8 is built on a new high-voltage battery electric platform and features a proprietary electric drive system, offering industry-leading range and efficiency. With its yacht-inspired design and advanced safety features, the Li i8 is set to redefine family mobility and enhance Li Auto’s positioning in the market. Deliveries are scheduled to begin on August 20, 2025, and the launch is expected to strengthen Li Auto’s competitive edge and appeal to a broader range of consumers.

Li Auto Reports Stable Share Capital for June 2025

On July 7, 2025, Li Auto Inc. submitted a monthly return form to The Stock Exchange of Hong Kong Limited, detailing the movements in its authorized share capital and issued shares for June 2025. The report highlighted that there were no changes in the number of authorized or issued shares during the month. The exercise of share options and restricted share units under the company’s 2019 and 2020 plans resulted in the issuance of new shares to the Depositary for bulk issuance of ADSs. This report reflects Li Auto’s stable share capital structure and ongoing commitment to its share incentive plans, which are crucial for retaining talent and aligning employee interests with shareholder value.

Li Auto Grants 1.97 Million RSUs to Boost Employee Retention

On June 15, 2025, Li Auto Inc. announced the grant of 1,975,900 Restricted Share Units (RSUs) to one director and 142 employees under its 2019 Plan. This move aims to incentivize and retain key personnel by aligning their interests with the company’s success. The RSUs represent approximately 0.09% of the total shares in issue and are subject to performance targets and clawback mechanisms. The vesting period for these RSUs varies, with some vesting as early as December 2025, reflecting the company’s strategy to secure valuable contributions from its workforce.