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

Core Insights - Li Auto Inc. has faced significant operational challenges leading to downgrades from major financial institutions [2][3] - The company's third-quarter performance showed a substantial decline in revenue and deliveries, indicating potential long-term issues [4] Group 1: Downgrades and Price Targets - HSBC downgraded Li Auto Inc. from Buy to Hold, reducing the price target from $30.30 to $18.60 due to recall and delivery issues, along with declining sales [2] - Goldman Sachs also lowered its price target from $30.90 to $27 while maintaining a Buy rating, citing higher operating expenses and one-time recall costs as factors for the company's underperformance [3] Group 2: Financial Performance - Li Auto's third-quarter revenue decreased by 36% year-on-year, with total deliveries falling by 39% to 93,211 units, resulting in a loss of RMB625 million [4] - The significant drop in revenue and deliveries reflects serious operational difficulties and raises concerns about future profitability [2][4]