Li Auto Price Target Cut to $22, but Wall Street Still Sees Upside

Quick Read Li Auto (LI) posted Q4 vehicle deliveries of 109,194 units, down 31.2% year over year, with vehicle margins compressing to 16.8% from 19.7%, but Morgan Stanley maintained an Overweight rating with a $22 price target reflecting expected margin recovery from the all-new L9 launch in Q2 2026 and sustained AI-native R&D investment of $3.0 billion. Li Auto’s path to Morgan Stanley’s $22 target requires successful L9 launch execution to stabilize margins, delivery recovery in 2026, and relief from ...