JPMorgan Cuts Li Auto to Underweight, Foresees Flat Q1 EV Deliveries
JPMorgan downgraded Li Auto’s rating to underweight and cut its 12-month price target, citing a pessimistic EV demand outlook in China and forecasting flat vehicle deliveries in the first quarter. The bank warned that weaker consumer spending and rising promotional incentives will pressure Li Auto’s margin expansion.
1. JPMorgan Downgrade Details
JPMorgan analysts downgraded Li Auto’s rating to underweight, trimming the 12-month price target to reflect weaker demand expectations. They cut first-quarter delivery forecasts and flagged increased promotional incentives as factors that will compress the company’s margins.
2. China EV Demand Outlook
Analysts cited a pessimistic EV demand outlook in China, pointing to subdued consumer spending and intensifying competition. They warned that slower order growth could delay Li Auto’s upcoming model launches and pressure profitability throughout the year.