JP Morgan Downgrades Li Auto (LI), Cites EV Market Challenges Ahead

Li Auto Inc. (NASDAQ:LI) is one of the best high growth consumer stocks to buy now. On August 14, JP Morgan downgraded Li Auto Inc. (NASDAQ:LI) from a Buy to a Holdwhile also reducing the price target on the company from $33 to $28. However, despite the cut, the implied upside on the Chinese EV maker stands at 20%, from the current market price of $23.32.

JP Morgan Downgrades Li Auto (LI), Cites EV Market Challenges Ahead

JP Morgan expects the second half of this year and beyond to be tougher for the company as the EV landscape in China becomes more competitive. The bank expects the Chinese passenger vehicle to decelerate next year, or even decline, as Chinese government subsidies are expiring later this year. The company had a tough Q1, generating $3.56 billion in revenue, flat from the same quarter last year.

The company has been spending money to broaden its product portfolio. The company’s latest car, Li Mega, is a large van boasting a futuristic look, spacious interior, blind spot camera, “Magnetic Carpet” Air Suspension, and fast charging. The van can reportedly add a range of 500 kilometers (310 miles) in about 12 minutes, significantly faster than Tesla’s supercharger.

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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Disclosure: None.