Li Auto (LI) AI Stock Analysis

• Market Cap: $18.13B
• Dividend Yield: N/A
• Average Volume (3M): 4.33M
• Price to Earnings (P/E): 31.0
• Beta (1Y): 0.91
• Revenue Growth: -12.37%
• EPS Growth: -56.82%
• Country: US
• Employees: 32,248
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -0.05
• Shares Outstanding: 892,535,100
• 10 Day Avg. Volume: 4,813,220
• 30 Day Avg. Volume: 4,327,628
• PEG Ratio: -0.67
• Price to Book (P/B): 2.46
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 21.27
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 0.59
• Enterprise Value/Ebitda: 2.63
• 1Y Price Target: $21.48
• Price Target Upside: 20.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): 0.38
• Revenue Forecast (FY): $16.71B

• Rating: 55 Neutral
• Price Target: $18.50 ▲(3.93% Upside)

Li Auto's overall stock score reflects a combination of mixed financial performance, bearish technical indicators, and a relatively high valuation. The company's strong balance sheet is a positive factor, but liquidity challenges and declining revenue growth weigh heavily on the score. The technical analysis indicates a bearish trend, further impacting the overall score. The absence of a dividend yield and a high P/E ratio suggest limited valuation appeal.

Positive Factors

Strategic Expansion

Li Auto's global expansion efforts, including new stores in Central Asia and beyond, enhance its market reach and operational capabilities, supporting long-term growth.

Technological Advancements

Developing in-house AI systems positions Li Auto at the forefront of automotive tech, potentially improving user experience and maintaining competitive advantage.

Strong Balance Sheet

A robust balance sheet with low leverage provides financial stability, enabling Li Auto to invest in growth and weather industry challenges.

Negative Factors

Declining Revenue Growth

Declining revenue growth indicates potential market saturation or competitive pressures, challenging Li Auto's ability to sustain its market position.

Cash Flow Challenges

Substantial declines in free cash flow highlight liquidity issues, potentially limiting Li Auto's ability to fund operations and strategic initiatives.

Supply Chain Issues

Persistent supply chain challenges can disrupt production and delivery, impacting Li Auto's ability to meet demand and maintain customer satisfaction.

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, including the Li ONE and future models. The company employs a direct sales model, selling vehicles through its own retail stores and online platforms, which allows for better customer engagement and higher margins. In addition to vehicle sales, Li Auto earns revenue from ancillary services such as vehicle financing, insurance products, and after-sales services. The company also benefits from strategic partnerships with technology and automotive suppliers that enhance its production capabilities and reduce costs. Government subsidies and incentives for electric vehicle purchases in China further contribute to Li Auto's financial performance, bolstering demand for its products in a competitive market.

Li Auto Financial Statement Overview

Summary

Li Auto demonstrates strong financial health with a solid balance sheet characterized by low leverage and effective equity utilization. However, the decline in revenue growth and net profit margin indicates potential challenges in profitability. Cash flow metrics highlight adequate cash generation, though recent declines in free cash flow growth warrant attention.

Income Statement

Li Auto shows a strong gross profit margin of 20.6% for TTM, indicating effective cost management. However, the net profit margin is relatively low at 5.6%, suggesting room for improvement in profitability. The revenue growth rate has declined significantly by 0.99% in the TTM period, which is a concern. Despite this, the EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is low at 0.23, indicating a conservative capital structure with manageable leverage. Return on equity is healthy at 11.4%, showing effective use of shareholder funds. The equity ratio stands at 45.3%, suggesting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Li Auto's free cash flow growth rate has decreased by 11.2% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is 0.21, indicating sufficient cash generation relative to net income. The free cash flow to net income ratio of 0.58 suggests that a significant portion of earnings is converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	125.72B	144.52B	123.83B	46.08B	26.66B	8.94B
Gross Profit	24.38B	29.67B	27.49B	8.81B	5.55B	1.39B
EBITDA	5.42B	12.57B	12.32B	-853.90M	494.34M	244.14M
Net Income	4.51B	8.04B	11.70B	-2.05B	-317.29M	-159.79M
Balance Sheet
Total Assets	153.12B	162.35B	143.47B	86.54B	61.85B	36.37B
Cash, Cash Equivalents and Short-Term Investments	98.68B	112.81B	103.26B	56.51B	47.52B	28.64B
Total Debt	17.89B	16.34B	13.55B	12.26B	7.84B	2.11B
Total Liabilities	79.92B	91.03B	82.89B	41.35B	20.78B	6.57B
Stockholders Equity	72.69B	70.87B	60.14B	44.86B	41.06B	29.80B
Cash Flow
Free Cash Flow	-7.71B	8.20B	44.19B	2.25B	4.90B	2.46B
Operating Cash Flow	-3.45B	15.93B	50.69B	7.38B	8.34B	3.14B
Investing Cash Flow	-22.80B	-41.14B	-12.07M	-4.36B	-4.26B	-18.74B
Financing Cash Flow	-145.63M	-415.65M	185.38M	5.64B	16.71B	24.71B

Li Auto Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LI, the sentiment is Negative. The current price of 17.8 is below the 20-day moving average (MA) of 18.68, below the 50-day MA of 21.10, and below the 200-day MA of 25.14, indicating a bearish trend. The MACD of -0.95 indicates Negative momentum. The RSI at 32.39 is Neutral, neither overbought nor oversold. The STOCH value of 19.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LI.

Li Auto Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RIVN	57 Neutral	$22.01B	―	-65.28%	―	28.21%	44.43%
LI	55 Neutral	$18.13B	30.98	6.28%	―	-12.37%	-56.82%
XPEV	50 Neutral	$19.09B	―	-9.01%	―	86.57%	51.35%
NIO	45 Neutral	$10.81B	―	-294.28%	―	13.21%	3.77%
VFS	45 Neutral	$7.86B	―	―	―	74.91%	-43.10%
LCID	41 Neutral	$4.35B	―	-61.12%	―	45.86%	22.13%

Li Auto Corporate Events

Li Auto Reports Stable Share Capital for October 2025

On November 6, 2025, Li Auto Inc. submitted a monthly return form to the Hong Kong Stock Exchange, detailing the movements in its authorized share capital and issued shares for October 2025. The report highlighted that there were no changes in the number of authorized or issued shares during the month. This stability in share capital indicates a period of consolidation for the company, potentially reflecting a strategic pause in capital restructuring or expansion activities.

Li Auto Expands Global Presence with New Deliveries and Overseas Stores

In October 2025, Li Auto Inc. delivered 31,767 vehicles, increasing its cumulative deliveries to 1,462,788. The company is expanding globally, having opened its first overseas retail store in Uzbekistan and planning further expansion in Central Asia, the Middle East, Europe, and Asia-Pacific. Li Auto’s strategic moves aim to strengthen its market presence and enhance its operational capabilities, impacting stakeholders positively by broadening its market reach and increasing its service infrastructure.

Li Auto Reports Stable Share Capital for September 2025

On October 8, 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 September 2025. The report indicated no changes in the number of issued shares or treasury shares during the month. This stability in share capital suggests a steady operational phase for Li Auto, potentially reinforcing investor confidence and maintaining its market position in the competitive electric vehicle sector.

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.