Li Auto (LI) Stock Forecast & Price Target

Li Auto
Bear Case

Investors should be bearish about investing in Li Auto Inc. for these reasons:

• The stock carries a negative price-to-earnings ratio of -16.81, indicating that the company is currently unprofitable, with analysts forecasting negative earnings per share of -0.71 for the current fiscal year, which poses a risk to shareholder returns.
• Wall Street analysts have assigned a consensus recommendation of "Reduce" to Li Auto Inc., with two sell ratings and eleven hold ratings, reflecting a lack of confidence in the stock's near-term upside potential compared to other investment opportunities.
• Recent delivery data shows signs of volume moderation, with September 2026 deliveries of 31,817 vehicles contributing to a year-over-year revenue decline of 15.1% in the most recent reported quarter, suggesting weakening demand or increased competitive pressure.
• The company is facing margin compression, evidenced by a negative net margin of 4.44% and a negative return on equity of 6.58%, which indicates that rising costs of goods sold are outpacing revenue growth and eroding profitability.
• Short interest in Li Auto Inc. has been rising, with 29,105,076 shares shorted as of the latest record date, representing a short percentage of float of approximately 5.46%, which suggests that a significant portion of the market is betting against the stock's price appreciation.