Li Auto (LI) AI Stock Analysis

• Market Cap: $16.26B
• Dividend Yield: N/A
• Average Volume (3M): 4.03M
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.91
• Revenue Growth: -10.00%
• EPS Growth: -54.75%
• 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: 4,809,153
• 30 Day Avg. Volume: 4,025,302
• 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: 9.16
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 6.11
• Enterprise Value/Ebitda: 27.48
• 1Y Price Target: $20.78
• Price Target Upside: 28.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): 0.68
• Revenue Forecast (FY): $20.32B

• Rating: 55 Neutral
• Price Target: $16.50 ▲(1.91% 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

Strong balance sheet

Low financial leverage and double-digit ROE provide durable financial flexibility. This balance-sheet strength supports multi-year investments in R&D, manufacturing scale and international expansion, and helps the firm weather cyclicality in EV demand without urgent refinancing risk.

Scale and service network

Large cumulative deliveries and extensive retail, service and charging infrastructure create a durable competitive moat for family-oriented buyers. The installed base drives recurring service revenue, lowers customer acquisition cost, and supports after-sales margins and brand stickiness over the next several years.

In-house AI/semiconductor effort

Developing an in-house AI system and chip stack addresses long-term differentiation in vehicle software and user experience. Owning core software/hardware can improve gross margins, enable unique features, and create recurring software monetization opportunities versus competitors reliant on third-party stacks.

Negative Factors

Declining revenue growth

Sustained negative revenue growth erodes scale economics and weakens the company’s ability to spread fixed costs across higher volumes. Over a 2-6 month horizon this trend can compress margins, reduce free cash flow, and hamper funding for product development and market expansion initiatives.

Weak cash generation

Material deterioration in operating and free cash flow limits internal funding for capex, battery investments and overseas rollouts. Low OCF-to-net-income signals earnings are less convertible to cash, increasing reliance on external financing and raising execution risk for multi-year product and tech programs.

Margin and production pressures

Falling vehicle margins driven by recall costs and higher unit manufacturing expenditures weaken core profitability. Combined with production ramp and supply-chain planning failures, these structural execution issues raise the risk of sustained higher cost per unit and reputational damage that can depress margins long term.

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 presents a mixed financial picture. The income statement shows stable margins but declining revenue growth. The balance sheet is robust with low leverage and good returns on equity, indicating financial stability. However, the cash flow statement highlights liquidity challenges, with significant declines in free cash flow. The company should focus on improving revenue growth and cash flow management to enhance its financial health.

Income Statement

Li Auto's income statement shows a mixed performance. The TTM data indicates a gross profit margin of 20.64% and a net profit margin of 5.64%, which are relatively stable compared to the previous year. However, the revenue growth rate has declined by 11.15% in the TTM period, indicating a potential slowdown. The EBIT and EBITDA margins are moderate, reflecting operational efficiency but also highlighting the need for improved cost management.

Balance Sheet

The balance sheet of Li Auto is strong with a low debt-to-equity ratio of 0.23, indicating prudent financial leverage. The return on equity stands at 11.44% for the TTM, showing effective utilization of shareholder funds. The equity ratio is healthy, suggesting a solid capital structure. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

Li Auto's cash flow statement reveals challenges, with a significant decline in free cash flow growth by 188.21% in the TTM period. The operating cash flow to net income ratio is low at 0.21, indicating potential liquidity issues. However, the free cash flow to net income ratio is relatively better at 0.58, suggesting some capacity to generate cash relative to net income.

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: 16.19
• 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 16.19 is below the 20-day moving average (MA) of 16.85, below the 50-day MA of 17.74, and below the 200-day MA of 23.60, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 37.16 is Neutral, neither overbought nor oversold. The STOCH value of 13.83 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%
LI	55 Neutral	$16.26B	27.10	6.53%	―	-10.00%	-54.75%
RIVN	53 Neutral	$20.44B	-5.36	-65.28%	―	28.21%	44.43%
XPEV	50 Neutral	$19.69B	-49.60	-9.01%	―	86.57%	51.35%
NIO	45 Neutral	$10.55B	-3.24	-296.45%	―	14.94%	2.53%
VFS	45 Neutral	$8.14B	―	―	―	74.91%	-43.10%
LCID	41 Neutral	$3.28B	-0.94	-61.12%	―	45.86%	22.13%

Li Auto Corporate Events

Li Auto Reports Stable Share Capital and Active Incentive Plans in December 2025 Hong Kong Filing

On January 7, 2026, Li Auto filed a Form 6-K with the U.S. Securities and Exchange Commission noting that it had submitted a monthly return to the Hong Kong Stock Exchange detailing movements in its authorized share capital and issued shares for the month ended December 31, 2025. The filing shows that Li Auto’s total authorized share capital remained unchanged at 5 billion weighted voting right (WVR) ordinary shares—4.5 billion Class A shares listed in Hong Kong and 500 million unlisted Class B shares—with no change in the number of issued Class A or Class B shares during December. While the overall share count was stable, the company continued to use its equity incentive structures: share options and restricted share units under its 2019 and 2020 plans were exercised and granted, largely settled using existing Class A shares previously issued to a depositary for ADS programs, preserving the outstanding share base and underscoring ongoing employee and management equity participation without immediate dilution to public shareholders. The report also confirms that Li Auto’s outstanding US$862.5 million 2028 convertible senior notes remained unchanged, with potential future dilution of up to about 60.9 million Class A shares if converted, highlighting a significant but currently latent source of additional equity over the medium term.

The most recent analyst rating on (LI) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Li Auto stock, see the LI Stock Forecast page.

Li Auto Tops 1.5 Million Cumulative Deliveries and Expands Overseas in December 2025

In December 2025, Li Auto delivered 44,246 vehicles, bringing its fourth-quarter 2025 deliveries to 109,194 and lifting cumulative deliveries to 1,540,215 as of December 31, 2025, marking the milestone of 1.5 million vehicles delivered since launch. During the month, the company continued its international push by introducing its Li L9, Li L7, and Li L6 models to Egypt, Kazakhstan, and Azerbaijan, broadening its presence into Central Asia, the Caucasus, and parts of Africa, while also officially launching its Li AI smart glasses, Livis, which drew positive user feedback; as of year-end 2025, Li Auto’s operational footprint in China comprised 548 retail stores in 159 cities, 561 service and body-and-paint centers in 224 cities, and 3,907 super charging stations with 21,651 charging stalls, underscoring its expanding ecosystem and infrastructure to support further growth for customers and investors alike.

The most recent analyst rating on (LI) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Li Auto stock, see the LI Stock Forecast page.

Li Auto Reports Stable Share Capital for November 2025

Li Auto Inc. submitted a monthly return form to the Hong Kong Stock Exchange on December 4, 2025, detailing the movements in its authorized share capital and issued shares for November 2025. The report indicates that there were no changes in the number of authorized or issued shares during this period. This stability in share capital suggests a steady operational phase for Li Auto, potentially reflecting confidence in its current market strategy and financial health, which may reassure investors and stakeholders.

The most recent analyst rating on (LI) stock is a Hold with a $18.60 price target. To see the full list of analyst forecasts on Li Auto stock, see the LI Stock Forecast page.

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.

The most recent analyst rating on (LI) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Li Auto stock, see the LI Stock Forecast page.

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.

The most recent analyst rating on (LI) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Li Auto stock, see the LI Stock Forecast page.