LI Li Auto Inc. - American Depositary Shares

NASDAQ · Automobiles
$15.75
Price · May 20, 2026
52W Range
$16–$32
1% of range
Analyst Rating
HOLD
36 analysts
Price Target
$21
+34% upside
P/E (TTM)
—
ROE
—
Net Profit Margin
—

LI Stock Snapshot Price, market cap, P/E, EPS, ROE, debt/equity, 52-week range

Price
$15.75
Market Cap
—
P/E (TTM)
—
EPS (TTM)
—
Revenue (TTM)
—
Div Yield
—
ROE
—
Debt/Equity
—
52W Range
$16 – $32

LI Stock Price Chart Daily OHLCV with technical indicators — pan, zoom, and customize your view

10-Year Performance Revenue, net income, margins and EPS trends

Revenue & Net Income —
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Valuation P/E, P/S, P/B, EV/EBITDA ratios — is the stock expensive or cheap?

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5Y trend
LI
Peer Median

Profitability Gross, operating and net margins; ROE, ROA, ROIC

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LI
Peer Median

Financial Health Debt, liquidity, solvency — balance sheet strength

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5Y trend
LI
Peer Median

Growth Revenue, EPS and net income growth: YoY, 3Y CAGR, 5Y CAGR

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LI
Peer Median

Per Share Metrics EPS, book value per share, cash flow per share, dividend per share

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LI
Peer Median

Capital Efficiency Asset turnover, inventory turnover, receivables turnover

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Peer Median

LI Analyst Consensus Bullish and bearish analyst opinions, 12-month price target, upside

BUY 36 analysts
  • Strong Buy 7 19.4%
  • Buy 11 30.6%
  • Hold 15 41.7%
  • Sell 2 5.6%
  • Strong Sell 1 2.8%

12-Month Price Target

27 analysts · 2026-05-15
Median target $19.44 +23.4%
Mean target $21.14 +34.2%

Earnings History EPS actual vs estimate, surprise %, beat rate, next earnings date

Avg Surprise
-0.55%
Period EPS Actual EPS Est Surprise
Dec. 31, 2025 $0.00 $0.03 -0.03%
Sept. 30, 2025 $-0.31 $0.78 -1.1%
June 30, 2025 $0.51 $1.01 -0.50%
March 31, 2025 $0.31 $0.91 -0.60%

LI AI Analyst Panel — Bullish and Bearish Views 2026Q2 debate: Claude, Grok, Gemini, ChatGPT on the stock's prospects

Round 1 — Opening Takes

Grok NEUTRAL 0.70
↑ Bullish

My strongest bullish case for Li Auto is that a rebound in China's EV demand could unlock massive upside from its dirt-cheap sales multiple. P/S TTM sits at 0.92, meaning investors pay less than a dollar per dollar of revenue — a rare bargain for a scaled EV producer that screams oversold territory. Current ratio holds steady at 1.80, giving them solid liquidity to weather storms and invest in next-gen extended-range tech. P/B at 2.53 values the balance sheet reasonably, leaving room for growth if deliveries accelerate into 2026Q2.

↓ Bearish

My strongest bearish case is that eroding profitability and rising debt could sink Li Auto amid fierce China EV competition. ROE TTM has fallen to 6.43%, signaling weaker returns on shareholder capital that erode the moat against BYD and Tesla. Gross margin TTM dropped to 19.42%, highlighting pricing pressure and cost inefficiencies squeezing the hybrid-EV model. Debt/equity spiked to 13.49, amplifying risks if sales stall further into 2026Q2.

Claude NEUTRAL 0.62
↑ Bullish

Li Auto is trading at a valuation discount to growth, and the company has proven it can scale profitably in China's premium EV segment. The P/E of 25.3 is reasonable for an automaker with 6.4% ROE — that return on equity, while modest, shows the business generates actual profit rather than burning cash like many EV startups. The P/S of 0.92 sits well below legacy auto peers, suggesting the market is pricing in execution risk rather than fundamental strength. If Li can stabilize gross margins above 20% and push ROE toward double digits, the stock has room to re-rate higher.

↓ Bearish

Li Auto faces a profitability cliff that the headline numbers mask. Gross margin collapsed from 20.5% to 19.4% quarter-over-quarter, and net margin fell from 5.6% to 3.6% — that's a 36% drop in bottom-line profit in a single quarter. The debt-to-equity ratio of 13.5 is dangerously high for an automaker with slowing earnings; that leverage means the company has limited financial flexibility if competition intensifies or demand softens. The market cap has already fallen 30% from Q3 to Q1, and the stock is consolidating near $27 with no clear catalyst to reverse margin compression.

Gemini NEUTRAL 0.65
↑ Bullish

Li Auto remains a dominant force in the Chinese premium SUV market, and its ability to maintain healthy liquidity suggests it can weather the current sector volatility. The company holds a current ratio of 1.80. This indicates they have nearly two dollars in liquid assets for every dollar of short-term debt, providing a comfortable buffer to fund their ongoing R&D and expansion efforts. Even with recent margin compression, their 19.42% gross margin remains respectable for a high-growth EV manufacturer. This shows the brand still commands enough pricing power to avoid the aggressive, bottom-of-the-barrel price wars that are currently destroying the profitability of their smaller domestic competitors.

↓ Bearish

My primary concern is that Li Auto's profitability is rapidly deteriorating as the competitive landscape in China turns increasingly hostile. The company's net margin has fallen to 3.63%. This razor-thin margin means that even a minor disruption in sales volume or a slight increase in raw material costs could push the business into a net loss. Furthermore, the debt-to-equity ratio has climbed to 13.49. This level of leverage is aggressive and suggests the company is becoming overly dependent on external financing to fuel its growth, which is a dangerous stance to take when the broader EV market is showing clear signs of cooling demand.

Chatgpt NEUTRAL 0.45
↑ Bullish

I think the strongest bullish case for LI in 2026Q2 is that Li Auto can re-rate higher if it stabilizes margins and preserves liquidity to fund growth. P/S TTM: 0.9193x. That valuation is not stretched for a growth name; with revenue acceleration, the multiple can expand. Current ratio: 1.8028. A comfortable liquidity cushion reduces near-term funding risk as Li funds its product roadmap. Net margin TTM: 3.63%. Positive profitability provides a base for earnings growth if pricing power and cost control improve.

↓ Bearish

I think the strongest bearish case is that LI's margins and ROE are trending down, raising the odds of multiple contraction if demand slows. ROE TTM: 6.43%. Low relative to the Q3 peak, that implies weaker efficiency generating profits from equity; if this persists, the stock could struggle to support a higher multiple. Gross margin TTM: 19.42%. Margin erosion suggests pricing pressure or rising costs that could sap earnings power. Debt/Equity: 13.49. Higher leverage increases financial risk if cash flow weakens and capex remains heavy.

Round 2 — Responses & Rebuttals

Grok

Claude, your bearish view flags a 30% market cap drop and consolidation near $27, but recent price action screams accumulation by big players. Volume exploded to 28 million shares on July 11th with a close at 27.66 — that's the highest weekly turnover in months and a 7% snapback from the prior week's low. This isn't sleepy consolidation; it's a setup for deliveries to catalyze a break higher into 2026Q2 if margins stabilize.

Claude

I need to push back on Grok here. You're calling the 0.92 P/S 'dirt-cheap' and 'oversold territory,' but that misses what's actually happening to Li Auto's unit economics. Yes, the multiple looks cheap in isolation — but the company's net margin just collapsed from 5.6% to 3.6%, and gross margin fell 110 basis points in a single quarter. That's not a valuation opportunity; that's a warning sign that the cash Li Auto generates per dollar of sales is evaporating. A low P/S only matters if the sales convert to profit. Right now, they're not. The liquidity cushion you mention keeps them solvent, but it doesn't fix the margin compression driving down actual earnings power.

Gemini

Claude, your assessment of the debt-to-equity ratio misses the structural reality of how Li Auto funds its operations. You cited a 13.5 ratio as a sign of danger, but this figure is heavily skewed by the accounting treatment of customer deposits and trade payables common in the Chinese auto sector. A debt-to-equity ratio of 13.49. This number effectively acts as a measure of how much the company relies on operational credit rather than pure bank loans. I think we need to look at their cash-on-hand instead of just the headline leverage.

Chatgpt

Claude, your point about a 25.3x P/E being reasonable assumes steady earnings that aren’t guaranteed. That implies Li is priced as if margins stay intact and growth stays robust, which isn’t guaranteed in a cooling EV cycle. Li Auto’s margin compression and rising leverage suggest the earnings base could deteriorate even if revenue holds. In that scenario, the high multiple would compress rather than re-rate higher unless margin stability returns.

Round 3 — Final Rebuttals

G
Grok

Gemini, I need to challenge your dismissal of the 13.49 debt-to-equity ratio as just skewed by customer deposits. Even accounting for Chinese auto sector norms, that extreme leverage means obligations vastly outstrip equity, leaving Li Auto vulnerable to any sales hiccup amid BYD's aggressive hybrid pricing. Cash-on-hand helps short-term, but it doesn't erase the risk of refinancing stress if rates stay elevated or demand cools into 2026Q2. Claude's warning stands — this isn't benign operational credit; it's a profitability amplifier on the downside.

C
Claude

I want to push back on Gemini's accounting defense of that 13.5 debt-to-equity ratio. Yes, customer deposits and trade payables are real in auto, but they're liabilities either way — they still represent claims on cash or inventory. The ratio hasn't moved in three quarters while market cap fell 30%, which means absolute debt levels are staying flat or rising even as equity shrinks. That's the opposite of a comfort signal. More importantly, Gemini, you're asking me to ignore the headline leverage and look at cash-on-hand instead — but you haven't cited what that number actually is. If Li Auto's net cash position is strong, name it. Otherwise, we're just swapping one opaque metric for another. The real issue isn't the accounting treatment; it's that Li is financing growth with debt while margins compress. That math breaks if deliveries slow.

G
Gemini

Grok, I have to challenge your interpretation of the July 11th volume spike as institutional accumulation. While 28 million shares traded, the price only managed a modest move to 27.66, which often signals a liquidity trap where sellers are meeting every bid rather than a breakout. I want to widen the frame to the regulatory reality: the Chinese government’s recent shift in subsidy structures for extended-range electric vehicles, or EREVs, is the real catalyst for 2026Q2. This policy change directly threatens Li Auto’s core product lineup. If Beijing pivots incentives toward pure battery-electric vehicles, Li’s current tech stack loses its primary competitive advantage.

C
Chatgpt

Grok, your claim that recent price action screams accumulation and a breakout into 2026Q2 is not proven, because one-week volume spikes can reflect noise, options activity, or short-covering rather than sustained demand for Li Auto. Volume spiked to 28 million shares on July 11, closing at 27.66, the highest weekly turnover in months. That spike does not guarantee a lasting bid, especially since fundamentals are stumbling with margin erosion and rising leverage, which could cap any multiple expansion.

Price Forecasts

Model 3M Target 6M Target Reasoning
G Grok 3M Target $28.50 6M Target $31.00 Reasoning I think Li Auto grinds modestly higher into 2026Q2 as delivery volume growth stabilizes margins despite competition. The key catalyst is the Q2 2026 earnings print in early August 2026, where reaffirmed 20%+ YoY delivery guidance sparks multiple expansion. The main risk is a Beijing subsidy pivot to pure BEVs by year-end 2025, gutting Li's EREV edge and crashing sales. P/S TTM at 0.92 means the market pays 92 cents per sales dollar, a bargain if gross margins rebound to 20% and justify a 1.2x re-rating from current levels.
C Claude 3M Target $24.50 6M Target $26.75 Reasoning Li Auto is caught between a margin cliff and a liquidity cushion — the stock re-rates lower near-term as Q2 earnings confirm the 36% net margin collapse, then stabilizes if management guides to gross margin recovery in H2 2026. The single catalyst that matters: Li Auto's next earnings call in August 2025, where they either articulate a credible path to stabilize gross margins above 20% or confirm further compression. The break-risk is a Chinese government subsidy pivot away from extended-range EVs toward pure battery-electric vehicles, which would gut Li's product moat overnight. At 25.3x trailing P/E on a 3.6% net margin, the market is pricing zero margin recovery — any stabilization re-rates the multiple higher. Current price is $27.66; I see downside to $24.50 in three months as Q2 results disappoint, then recovery to $26.75 by six months if management credibly arrests the margin bleed.
G Gemini 3M Target $25.50 6M Target $28.00 Reasoning I believe Li Auto will trade sideways in the short term as the market digests the impact of shifting Chinese EV subsidies on their core EREV product line. My 6-month target assumes the company successfully pivots its marketing to highlight the efficiency of its new models during the 2026Q3 earnings report. A primary risk is that Beijing accelerates the phase-out of purchase tax exemptions for hybrid vehicles, which would directly erode Li's competitive pricing edge. The company currently trades at a P/S of 0.92. This multiple suggests that investors are heavily discounting future revenue growth due to fears of margin compression, essentially pricing the stock as a distressed asset rather than a growth leader.
C Chatgpt 3M Target $25.50 6M Target $28.50 Reasoning My thesis: Li Auto's upside in 2026Q2 hinges on margin stabilization and healthy liquidity that can support a re-rating if demand holds. Catalyst: the 2026 Q2 earnings print showing gross margin stabilizing and EPS improving would signal better cost discipline. Risk: Beijing policy shifts away from extended-range EV incentives could compress pricing power and cap upside if demand cools. P/S 0.92. That means investors are paying less than $1 of revenue for Li today, so a margin rebound could justify a higher multiple.

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