HSBC Downgrades To Hold For Li Auto Inc. (LI)

Li Auto Inc. (NASDAQ:LI) is among the 8 High Growth EV Stocks to Buy Now. 

HSBC Downgrades To Hold For Li Auto Inc. (LI)

HSBC downgraded Li Auto Inc. (NASDAQ:LI) to Hold from Buy on December 4, bringing down its price objective to $18.60 from $30.30, according to TheFly. HSBC stated that significant recall, delivery issues, and declining sales were the main causes of the downgrade, citing these events as a sign of serious operational difficulties. The firm also lowered Li Auto Inc. (NASDAQ:LI)’s earnings forecasts by 82%, noting falling margins and an uncertain picture for 2026, according to TheFly.

Earlier, on December 1, Goldman Sachs reduced its price objective for Li Auto Inc. (NASDAQ:LI) to $27 from $30.90 while retaining a Buy rating, TheFly reported. Analyst Tina Hou remarked that the company’s third-quarter outcomes were below forecasts due to higher operating expenses and one-time recall-related costs. According to the research note, Goldman Sachs believes the third quarter will be the lowest point in profitability and margins.

Li Auto Inc. (NASDAQ:LI)’s third-quarter revenue decreased 36% year on year. Total deliveries also fell by 39.0% to 93,211 units in the quarter, contributing to the Chinese electric vehicle maker’s loss of RMB625 million.

Li Auto Inc. (NASDAQ:LI) is a leading Chinese NEV company that creates, produces, and markets high-end smart NEVs.

While we acknowledge the risk and potential of LI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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