Should You Buy LI Stock as Li Auto Gears Up for Li i6 SUV Launch?

Yahoo

26-06-2025

As the global electric vehicle (EV) wave gains speed amid strong government backing, China's electric engine is roaring louder than ever. In a 1.9-million-unit market, plugin vehicle sales came to more than 1 million in May. Extended-range electric vehicles (EREVs) are also quietly stealing the spotlight. With 116,000 units sold in May alone, EREVs grew 52% year-over-year (YOY), claiming 11% of the plugin market.
This pivot fits Li Auto (LI) perfectly. While some automakers rushed into pure battery electric vehicles (BEVs), Li Auto carved out its niche with EREVs, bridging traditional combustion and EV tech. Li's premium EREV lineup has earned it a loyal base in China's hyper-competitive EV space, where price wars, tech races, and global ambitions collide.
Tesla's Robotaxis Reportedly Sped and Veered Into the Wrong Lanes. Does This Crush the Bull Case for TSLA Stock?
1 Dividend Stock to Buy Yielding Over 7%
Up 93% in 2025, Palantir Stock Is Too Hot to Handle Here
Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines.
Now entering the pure electric arena, Li Auto is following up its Li MEGA minivan with the Li i6 SUV. News of China's Ministry of Industry and Information Technology (MIIT) approving the model recently sent shares climbing, putting the spotlight back on Li as it prepares for a September launch. Sleek, spacious, and aimed squarely at premium rivals, the Li i6 signals a bold move for the EV firm. But as Li Auto ventures beyond its EREV stronghold and into an all-electric battlefield, can this momentum carry LI stock higher?
Li Auto is driving China's electric revolution with a smart twist: EREVs built for families who want tech without the range anxiety. Since rolling out its first model in 2019, the company's lineup has grown into a fleet of premium SUVs as well as the futuristic Li MEGA minivan — all designed for comfort, safety, and innovation.
Now expanding into pure battery EVs, Li Auto is doubling down on in-house tech, smart features, and user-focused design. With more than 500 retail stores, 500-plus service centers, and more than 2,000 supercharging stations, Li Auto is building an electric lifestyle for modern China.
Li Auto's market capitalization currently stands at $29.9 billion. Shares might have hit the brakes after February's $33.12 peak, now down 15% from that high. But the bigger picture tells a different tale. LI stock is still up 52% over the past 52 weeks, a solid surge surpassing the broader S&P 500 Index's ($SPX) 11% rally.
News of the sleek new Li i6 SUV sent shares climbing nearly 8% on Monday, sparking fresh investor enthusiasm. With momentum back and a bold shift into full electrics, Li's chart looks like it's ready to hit the accelerator again.
LI stock may not look like a bargain at first glance, priced at 22 times forward earnings and 1.49 times sales. But with its upcoming push, a refreshed lineup already sparking momentum, and solid margins potential, today's expensive could look like tomorrow's steal.
Li Auto dropped its first-quarter 2025 earnings results on May 29, and while the top line showed a seasonal dip, the company still managed to beat Wall Street's expectations. Revenues came in at RMB 25.9 billion ($3.6 billion), up slightly YOY but down 41.4% sequentially after a blockbuster Q4. Non-GAAP earnings per ADS landed at RMB 0.96 ($0.13), down 20.7% YOY but still beating projections.
Vehicle sales brought in RMB 24.7 billion ($3.4 billion), marking a 1.8% gain from a year ago despite a 42.1% quarter-over-quarter slide, largely chalked up to the Chinese New Year slowdown. Still, vehicle margins held firm at 19.8%, even edging up from last year's quarter thanks to cost efficiencies and strategic pricing.
Meanwhile, non-GAAP operating income soared 537% YOY to RMB 639.3 million ($88.1 million), showing underlying strength despite the quarterly dip. Cash reserves also remain rock solid at RMB 110.7 billion ($15.3 billion).
April brought fresh fuel to Li's growth engine — 33,939 deliveries, up 31.6% annually, and a refreshed lineup leaning into comfort, innovation, and autonomy. The new Li MEGA Home and Ultra now feature lounge-like interiors, rotating zero-gravity seats, and next-gen autonomous driving (AD) systems. And with all updated models priced competitively, Li is betting on volume without sacrificing margin.
Looking ahead, Li forecasts Q2 deliveries between 123,000 and 128,000 units, representing annual growth between 13.3% and 17.9%. Meanwhile, revenue is estimated to be between RMB 32.5 billion ($4.5 billion) and RMB 33.8 billion ($4.7 billion), suggesting a surge between 2.5% and 6.7%. In short, while Q1 may have cooled, Li Auto is rolling into Q2 with recharged momentum.
Analysts tracking the EV maker project Q2 revenues to be around $4.7 billion, while adjusted EPS is estimated to be around $0.25. Looking further ahead, fiscal 2025 EPS is anticipated to grow by 11.5% to $1.16 and jump another 62.9% in fiscal 2026 to $1.89.
Overall, Wall Street is leaning bullish on LI stock, but with a cautious foot on the brake, giving a consensus 'Moderate Buy' rating. Of the 14 analysts rating LI stock, seven analysts recommend a 'Strong Buy,' two suggest a 'Moderate Buy,' and the remaining five analysts have a 'Hold' rating.
Meanwhile, the mean price target of $33.42 suggests the stock could surge by more than 18% from current prices. The Street-high of $40 implies upside of 42%.
On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com