Li Auto (LI) Down 17% in a Month, Can It Rebound?

Published on July 13, 2026 at 5:58 am by Talha Qureshi in News

Li Auto Inc. (NASDAQ:LI) has declined more than 17% over the past month, mainly due to a sharp decline in vehicle margins and a consecutive monthly drop in vehicle deliveries. As a result, the stock is now trading close to its all-time low. However, the Street expects more than 49% upside from the current level, making it one of the Best All-Time Low Stocks to Buy Now.

Recently, on June 30, Li Auto Inc. (NASDAQ:LI) reported its June 2026 delivery update. During the month, the company delivered 30,895 vehicles. This was down from 33,350 vehicles delivered a month ago. The cumulative deliveries reached 1,733,687 as of June 30, 2026.

Management noted passing 150,000 units in cumulative production and also highlighted the recent launch of the all-new Li L8, a five-seat flagship SUV. The L8 features connected zero-gravity seats, an 800V active suspension system, a fully drive-by-wire chassis, the MACH M100 chip, and a 5C range extension system. Moreover, a new Li L6 model is set to launch in July 2026.

Management also noted that as of June 30, the company operated 495 retail stores across 160 cities. It also had 536 servicing centers and authorized shops in 220 cities.

That said, during the fiscal Q1 2026 earnings, the company noted that vehicle gross margins collapsed to 6.1% from 19.8% a year ago, primarily driven by a shift in product mix and the transition to new models like the Li i6. The company issued soft Q2 2026 guidance, expecting deliveries between 95,000 and 100,000 vehicles, which represents a year-over-year decline of 10% to 14.5% despite the launch of the new Li L8.

Li Auto (NASDAQ:LI) is an electric vehicle manufacturer based in Beijing, China. Founded in 2015, the company has quickly established itself as a dominant player in China’s electric vehicle market, focusing on the premium segment with family-oriented SUVs.

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