Li Auto may have a onerous time discovering development from right here, in line with Bernstein. The agency downgraded the Chinese electrical automobile inventory to market carry out from outperform on Tuesday, and trimmed its value goal to $26 per share from $33. Bernstein’s forecast requires 8% upside from Monday’s $24.05 shut. Analyst Euince Lee mentioned that she expects a “bumpier road ahead” for the corporate because of rising competitors and a troublesome outlook. LI YTD mountain LI Auto inventory in 2025. “Despite Li Auto’s pioneering role in [extended range electric vehicle] technology and significant advancements in ADAS, heightened competition in the premium [plug-in hybrid electric vehicle] & EREV SUV segment, along with challenges in the crowded BEV market, have tempered the outlook,” Lee mentioned. “Additionally, Li Auto’s BEV efforts are diluting margins.” The downgrade comes as Li Auto will get set to start deliveries on its six-seater i8 mannequin, whereas its six-seater i6 is about for launch subsequent month. “We do not expect a reversal in Li Auto’s market share in the near term, due to continuously rising competition in the high-end PHEV segment,” the analyst added. “Also, the new product cycle is focused on BEV which face challenging prospects in the crowded BEV segment.” The sentiment echoes that of JPMorgan’s, which downgraded Li Auto final week to impartial from obese. Despite the downgrade, most analysts overlaying the inventory stay bullish. Of the 28 who cowl Li Auto, 21 charge it a purchase or robust purchase, LSEG information reveals.