HSBC analyst Yuqian Ding lowered the price target for Li Auto to $15.60 from $17.20. The bank maintained its Hold rating on the stock.
Increased competition and a weak near-term profit outlook drove the decision. Cost inflation and higher research and development spending are pressuring gross margins.
HSBC flipped its 2026 forecast for Li Auto from a profit to a loss. Projections for 2026 through 2028 remain below consensus estimates.
The bank cited a structural shift in demand toward premium battery electric vehicles (BEVs). Li Auto remains heavily dependent on its extended-range electric vehicle (EREV) models.
Li Auto's U.S.-listed shares fell 1.4% in pre-market trading following the announcement.