LI
TSLA
Cheap, or just beaten up?
Li Auto is having one of those “the stock got bullied, but the business didn’t disappear” moments. Benzinga’s value score has shot up, and Morgan Stanley is still standing by its Overweight call with a $26 price target — which is basically Wall Street saying, “yes, the market is moody, but maybe overreacting a little.”
Why investors are watching
The setup gets more interesting when you layer in the company’s latest moves:
- The Li L9 premium 6-seat SUV launched on May 15, 2026, with deliveries starting right away.
- Li Auto says it’s sitting on more than RMB100 billion in cash, which is the corporate version of having a giant emergency snack drawer.
- The company also authorized a $1 billion buyback, a signal it thinks the stock is cheaper than management would like.
The fine print that matters
That doesn’t mean the road is smooth. April deliveries fell 16.97% sequentially, and the stock has been under serious pressure over the past year. In other words, the market is asking whether Li Auto can turn fresh product momentum into actual growth — not just good vibes and a lower valuation multiple.
Big picture
If the new SUV sells, the cash pile and buyback help on the downside, and Morgan Stanley’s target suddenly looks less like a moonshot and more like a spreadsheet with optimism baked in. If not, well, cheap stocks can always get cheaper — a brutal little truth the market loves to remind you of.