| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 51 | — | 17.6x | Around median | |
Growth | 25 | -27.4% | 7.1% | Bottom tier | |
Quality | 17 | -5.9% | 4.5% | Bottom tier | |
Safety | 26 | — | 2.6x | Bottom tier | |
Capital Return | 7 | — | 2.15% | Bottom tier | |
Momentum | 4 | -52.6% | 2.3% | Bottom tier | |
Sentiment | 83 | 14 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Li Auto Inc. is a Chinese new energy vehicle manufacturer focused on premium family vehicles priced above RMB 200,000. Its portfolio combines extended-range electric vehicles (EREVs) and fully electric battery electric vehicles (BEVs), each accounting for 50% of sales in the first half of fiscal year 2026. The company generates revenue primarily from vehicle sales; vehicle revenue reached RMB 24.1 billion out of total revenue of RMB 25.7 billion in the second quarter of fiscal year 2026, while its products are supported by a company-owned supercharging network and in-house technologies including 5C batteries, MACH M100 chips, and the MACH VLA system.
In the second quarter of fiscal year 2026, revenue declined 15.1% year over year to RMB 25.7 billion, but increased 11.7% from the previous quarter. Gross profit fell 53.3% year over year to RMB 2.8 billion, and vehicle margin declined to 9.4% from 19.4% a year earlier, while gross margin was 11.0% versus 20.1%. The company recorded an operating loss of RMB 2.3 billion, with a negative operating margin of 9.0%, and a net loss of RMB 1.7 billion, although these metrics improved from the operating loss of RMB 3.0 billion and net loss of RMB 2.3 billion in the previous quarter.
The annual financial statements show a sharp decline following the fiscal year 2024 peak; revenue decreased from $144.5 billion in fiscal year 2024 to $112.3 billion in fiscal year 2025, net income fell from $8.0 billion to $1.1 billion, and earnings per share declined from 3.79 to 0.54. In contrast, Li Auto retained liquidity of RMB 87.5 billion at the end of the second quarter of fiscal year 2026, giving it the capacity to fund product, chip, and battery development and its charging network during the portfolio refresh cycle.
The average analyst price target is $16.16, within a wide range of $13 to $22, and the average remains approximately 40% below the 52-week range high of $27.10, while the highest target is closer to that high than the lowest target. The analyst consensus is Neutral, consistent with the contrast between strong liquidity and new model launches on one hand, and the sharp year-over-year contraction in revenue and margins on the other. No valid price-to-earnings multiple is available as a valuation anchor, while the 52-week range extends from $11.65 to $27.10, a breadth consistent with the market's reassessment of the company after fiscal year 2025 net income fell to $1.1 billion from $8.0 billion in fiscal year 2024.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue declined 15.1% year over year to RMB 25.7 billion, and vehicle revenue fell 16.7% to RMB 24.1 billion. Management attributed this to lower deliveries and a decline in average selling price due to changes in the product mix, alongside a complete refresh cycle for the Li L series. Higher battery, memory, and semiconductor costs also caused gross margin to fall from 20.1% to 11.0% and net income to turn into a loss of RMB 1.7 billion.
The company set September 2, 2026, as the launch date for the new generation of Li MEGA, after redesigning the cabin, smart platform, and driving experience based on user feedback. The Li i9 is scheduled to launch in mid-September 2026 as a six-seat BEV sport utility vehicle for large families, featuring an 800-volt charging platform with 5C technology and a MACH M100 chip. The two models represent an expansion of the BEV portfolio, which already accounted for 50% of the company's sales in the first half of fiscal year 2026.
Vehicle margin improved sequentially from 6.1% to 9.4% in the second quarter of fiscal year 2026, and gross margin increased from 7.9% to 11.0%. Nevertheless, both remained well below 19.4% and 20.1%, respectively, a year earlier. Management believes a gross margin of between 15% and 20% would be healthy over the long term, but reaching it depends on stable raw material prices, broader deployment of internal technologies, and an improved product mix.
Automated analysis for informational purposes only — not investment advice.
Li Auto began delivering its MACH M100-based system in May 2026, and chip shipments exceeded 50,000 units as of August 26, 2026. The over-the-air 9.1 update improved MACH VLA performance by 20% and nearly doubled the proportion of urban distance traveled with the driver-assistance system activated. During the fourth quarter of fiscal year 2026, the company is targeting a perception range exceeding 250 meters and spatial accuracy within 5 centimeters, while reducing harsh braking, hesitation, and unnecessary lane changes by more than 30%.
Liquidity reached RMB 87.5 billion at the end of the second quarter of fiscal year 2026, compared with negative free cash flow of RMB 1.3 billion during the quarter. The company plans capital expenditure of approximately RMB 6.0 billion in fiscal year 2026, including continued construction of the charging network, which comprised 4,141 stations and more than 22,800 charging points by the end of July 2026. Management said achieving positive operating and free cash flow during fiscal year 2026 will depend heavily on deliveries in the fourth quarter of fiscal year 2026.
The analyst consensus is Neutral, and the average price target is $16.16. The target range extends from $13 to $22, revealing a meaningful divergence in assessments of the impact of new product launches versus weak earnings and margins. The average target is approximately 40% below the 52-week range high of $27.10, while no price-to-earnings multiple is available to confirm whether the valuation is low or high on an earnings basis.
