BofA Securities reduced its price target for Li Auto to $18 from $22.
The firm maintained its Neutral rating on the stock.
A weaker-than-expected second-quarter forecast and a surprise first-quarter net loss prompted the reduction.
Li Auto's second-quarter guidance projects a year-over-year decline in vehicle deliveries.
The guidance also projects a year-over-year decline in revenue.
First-quarter gross margin fell to 7.9%.
This margin stood at 20.5% a year earlier.
A shifting product mix and rising electric vehicle market competition drove this decline.
First-quarter revenue fell 11.4% year-over-year.
Total revenue reached 23 billion yuan.
The company recorded a net loss of 2.3 billion yuan, compared to a net income in the prior-year period.
First-quarter deliveries rose 2.5% year-over-year.
Total deliveries reached 95,142 vehicles.