JPMorgan downgraded Li Auto Inc. (LI) from Neutral to Underweight and reduced its price target from $18 to $14 due to expectations of underperformance in China’s auto industry in 2026. The firm anticipates a profitability loss for Li Auto this year, citing lower sales and margins, and a lack of new models. Despite the downgrade, Li Auto recently delivered 27,668 automobiles and updated its OTA software with new features, maintaining a significant retail and charging station presence across China.
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JPMorgan cut Li Auto Inc. (LI) to Underweight from Neutral
JPMorgan downgraded Li Auto Inc. (LI) from Neutral to Underweight and reduced its price target from $18 to $14 due to expectations of underperformance in China’s auto industry in 2026. The firm anticipates a profitability loss for Li Auto this year, citing lower sales and margins, and a lack of new models. Despite the downgrade, Li Auto recently delivered 27,668 automobiles and updated its OTA software with new features, maintaining a significant retail and charging station presence across China.