Bernstein Cuts Li Auto’s Price Target to $20

Bernstein SocGen Group analyst Eunice Lee lowered on November 27, 2025, the price target on Li Auto to $20 (from $25) while maintaining a ‘Market Perform’ rating.

“Management’s vision inspires confidence, but turnaround momentum awaits.

In his opening remarks, founder and CEO Li Xiang candidly acknowledged the challenges the company faces and articulated a long-term vision focused on organization, products, and technology for the next decade.

Organizationally, the company will shift back to an entrepreneurial model to better adapt to rapid industry and technology changes, emphasizing user value and efficiency over short-term results.

Product-wise, the goal is to develop embodied AI—cars as physical-world robots.

Technologically, this involves AI models with physical world understanding, in-house M100 chips, an optimized operating system for hardware-software integration, on-device computation rather than cloud reliance, supported by modified hardware for embodied AI.

Management’s vision is clear and inspiring, backed by proven execution capability.

However, realizing this vision hinges on the evolution of the AI landscape—a horizon likely several years away.

To restore investor confidence in the near term, the company must demonstrate tangible progress, including volume deliveries, earnings growth, and positive cash flow within the next 12 to 18 months.

Notably, the company is preparing a significant upgrade to its L-series EREVs next year, integrating its in-house M100 chips, alongside plans to accelerate overseas expansion.

However, whether these initiatives will suffice remains uncertain, prompting us to remain cautious and on the sidelines regarding the stock at this time.”

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