Li Auto Inc. (LI) AI Stock Analysis

Li Auto Inc. designs, develops, and manufactures new energy vehicles (NEVs) in the People's Republic of China. The company's flagship model is the Li ONE, a six-seat smart electric sport utility vehicle equipped with smart vehicle solutions, ADAS navigation, and automatic emergency braking capabilities. Beyond vehicle production, Li Auto provides sales, after-sales management, technology development, and corporate management services. It also invests in purchasing manufacturing equipment to support production capacity and maintain vehicle build quality across its lineup. Founded in 2015 and headquartered in Beijing, China, the company operates across the competitive electric vehicle market.

Li Auto grew annual revenue from $26.66B in FY2021 to a peak of $144.52B in FY2024, before revenue dropped 22.3% to $112.31B in FY2025. Gross margin shifted from 20.8% in FY2021 to 22.2% in FY2023, then contracted to 18.7% in FY2025. Operating margin dropped into negative territory at -0.5% in FY2025, while net income fell from $8.04B in FY2024 to $1.12B in FY2025. For the trailing twelve months ended June 30, 2026, revenue stood at $104.79B with a net profit margin of -4.4% and an operating margin of -8.5%. In the latest quarter ended June 30, 2026, quarterly revenue fell 15.1% year-over-year and quarterly earnings decreased 99.8%.

As of June 30, 2026, Li Auto held $85.64B in cash and short-term investments against $30.01B in total debt, yielding a net cash position of $55.63B. The company reported a current ratio of 1.81 and a debt-to-equity ratio of 0.45, with shareholders' equity at $65.98B. Cash generation deteriorated in FY2025, with operating cash flow turning to -$8.61B and free cash flow falling to -$12.82B. During FY2025, capital expenditures totaled $4.21B, while its 5-year share count decreased 2.0%.

Trading at $11.34 as of October 16, 2026, Li Auto has a market capitalization of $11.08B and an enterprise value of $941.0M. Its forward price-to-earnings multiple of 140.8x stands well above the median of 14.1x for its US-listed Consumer Cyclical peers, though its price-to-sales ratio of 0.1x is below the peer median of 0.7x. The company's EV-to-EBITDA ratio of 11.6x aligns near the peer median of 11.1x. Over the past year, LI shares fell 49.8%, compared to a 16.8% gain for the S&P 500 (SPY).

Wall Street coverage consists of 7 Strong Buy, 3 Buy, 14 Hold, and 1 Sell ratings. The mean price target of $15.18 sits 33.8% above the last closing price of $11.34. For the fiscal year ending December 31, 2026, consensus estimates project EPS of -$3.90 on revenue of $113.29B. For the following fiscal year, analysts estimate an EPS recovery to $3.72 on revenue of $141.71B. The company beat EPS estimates in 2 of the last 4 quarters, with its next earnings release scheduled for November 25, 2026.

This page is an AI-written research summary of Li Auto Inc. (LI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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