Li Auto Inc. shares fell Tuesday following a Goldman Sachs downgrade from Buy to Neutral.
The investment bank cut its 12-month price target for American depositary receipts by 21% to $19. Goldman also lowered the price target for Hong Kong-listed shares by 20% to HK$74. The downgrade triggered a decline in pre-market trading.
Analysts cited a weak outlook following the company's fourth-quarter 2025 financial results. Goldman Sachs anticipates two quarters of widening net profit losses and stagnant volume growth. Vehicle gross margins are expected to drop to approximately 5% in the first quarter. Promotions and rising costs are driving the margin compression. The bank reduced its volume and net profit forecasts for the 2026-2028 period.