Bernstein Downgrades Li Auto to ‘Market Perform’

Bernstein SocGen Group analyst Eunice Lee downgraded Li Auto from ‘Outperform’ to ‘Market Perform,’ with a price target of $26 (down from $33). Price targets were also lowered for the Hong Kong listing to HK$102 from HK$128.

“We downgrade Li Auto to Market-Perform and lower our price target for LI.US to US$26 (Old: US$33) and for 2015.HK to HK$102 (Old: HK$128).

Despite Li Auto’s pioneering EREV technology and strong ADAS progress, rising competition in premium PHEV SUVs and challenges in the crowded BEV market pressure the outlook.

Li Auto’s BEV efforts are also margin dilutive.

While technological strengths and overseas potential remain, the competitive landscape warrants a more cautious 12-month view.

Li Auto’s strong position in premium PHEV SUVs is being met with growing competition from Huawei-backed AITO, Great Wall, BYD, and upcoming entrants like XPeng, Zeekr, and Xiaomi.

Its market share in the segment fell from 72% in Q2 2023 to 34% in Q2 2025.

After over 100% annual growth for two years, high-end PHEV penetration is near 30%, and we expect future growth will moderate.”

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