JPMorgan downgraded Li Auto to Underweight from Neutral. The bank lowered its price target for the automaker to $14 from $18.
Analysts project that growth in China’s passenger vehicle market will turn negative in 2026. This industry-wide outlook led the firm to reduce its earnings forecast for the company.
The bank cited declining sales volumes and weakening margins as primary concerns. Analysts also highlighted a lack of upcoming new models as a factor in the more cautious stance.
JPMorgan simultaneously downgraded Li Auto’s Hong Kong-listed shares to Underweight.