Li Auto (NasdaqGS:LI) has officially launched the Li L6, an all-wheel drive SUV priced at RMB 249,800 for the standard model, with deliveries scheduled to begin within a week, drawing fresh attention to the stock.

Despite the spotlight on the new Li L6, Li Auto’s share price has had a tougher run, with a 90 day share price return down 33.78% and a 1 year total shareholder return down 61.04%, pointing to fading momentum as investors reassess growth and risk.

If Li Auto’s latest launch has you thinking about where growth might come from next, it could be worth scanning other opportunities in AI focused car and mobility technology through our 54 AI infrastructure stocks

Li Auto’s shares have fallen hard even as the Li L6 rollout keeps the product story in focus. Does the current valuation still offer enough potential upside to justify the risks you are taking on?

Most Popular Narrative: 33.2% Undervalued

Li Auto’s most followed narrative points to a fair value of $18.55 versus the last close at $12.39, framing the current share price as materially below that narrative estimate and putting extra focus on what would need to go right to close that gap.

The company's ongoing transition from extended-range vehicles (EREVs) to pure battery electric vehicles (BEVs) including successful launches of the Li MEGA and Li i8, and the upcoming Li i6, positions Li Auto to capture expanding market share as Chinese middle-class consumers upgrade and EV adoption accelerates, directly supporting long-term revenue growth and total addressable market expansion.

Curious what underpins that higher fair value for Li Auto? The narrative leans on compounding revenue assumptions, a margin rebuild from current losses, and a richer future earnings multiple. The mix of growth, profitability shift, and valuation expectations is doing the heavy lifting. The detailed numbers sit inside the full narrative.

Result: Fair Value of $18.55 (UNDERVALUED)

However, Li Auto’s heavy planned AI and capital spending, together with intense competition and weaker new model momentum, could undermine the narrative if sales or margins disappoint.

Next Steps

If the mixed sentiment around Li Auto leaves you undecided, it makes sense to move quickly and review the data yourself so you can frame your own thesis, starting with the 2 key rewards.

Looking for more investment ideas beyond Li Auto?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.