Li Auto (NasdaqGS:LI) Valuation Check After March Deliveries Rebound And New Tech Unveiling

March deliveries and tech announcements draw fresh attention

Li Auto (NasdaqGS:LI) has attracted fresh attention after reporting March deliveries of 41,053 vehicles and unveiling new autonomous driving technology, along with plans to introduce an updated Li L9 in the second quarter of 2026.

See our latest analysis for Li Auto.

The share price has picked up in recent weeks, with a 7.1% year to date share price return and an 8.3% 1 month share price return, although the 1 year total shareholder return of 25.4% decline shows longer term momentum has been weaker.

If Li Auto’s delivery rebound and new tech have caught your eye, it could be a good moment to widen your watchlist and check out 33 robotics and automation stocks

With Li Auto shares up 7.1% year to date but showing a 25.4% 1 year total return decline, the key question now is whether recent delivery strength and tech updates leave room for upside or if the market is already pricing in future growth.

Most Popular Narrative: 16.6% Undervalued

Li Auto’s most followed narrative puts fair value at $22.16, above the last close of $18.47, which frames the current debate around its recent delivery strength and tech rollouts.

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.

Read the complete narrative.

Want to see what is baked into that valuation gap? The narrative leans on brisk revenue and earnings growth, richer margins and a future profit multiple that assumes Li Auto keeps earning its premium story.

Result: Fair Value of $22.16 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, heavy R&D and capital spending, alongside fierce NEV competition, could pressure margins and challenge the idea that current pricing leaves a clear upside gap.

Find out about the key risks to this Li Auto narrative.

Another way to look at the valuation

The popular narrative says Li Auto is 16.6% undervalued based on future earnings projections, but the current P/E of 115.2x tells a very different story. It sits well above the peer average of 33.4x, the global auto average of 17.2x and even the fair ratio estimate of 35x. This points to meaningful valuation risk if expectations cool.

For a closer look at how this compares with peers and where the fair ratio estimate comes from, check the See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If the mix of optimism and concern in this story feels familiar, take a closer look at the numbers yourself and decide quickly where you stand. Start with the 1 key reward and 1 important warning sign.

Looking for more investment ideas?

If Li Auto has sharpened your thinking, do not stop there. Broaden your opportunity set now and see what stands out before the crowd moves.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com