Li Auto (LI) Valuation Check After Rebounding Deliveries And AI Tech Updates

Li Auto (LI) is back in focus after reporting 41,053 vehicle deliveries in March 2026. The pure electric Li i6 accounted for more than 24,000 units as production constraints eased.

See our latest analysis for Li Auto.

The share price has picked up momentum recently, with a 1 day share price return of 5.03% and a 90 day share price return of 15.31%. However, the 1 year total shareholder return shows a decline of 17.31% and the 3 year total shareholder return shows a decline of 21.78%. This suggests that recent delivery strength, new model launches and the US$1.0b buyback are being weighed against a weaker longer term experience for shareholders.

If you are watching how EV makers react to demand, it can also be useful to see which smaller names are moving in related areas through our screener of 36 AI infrastructure stocks

So with Li Auto trading at US$19.21, along with recent delivery strength, AI drive tech updates and a US$1.0b buyback in play, is the current price underestimating the story or already reflecting the growth investors are hoping for?

Most Popular Narrative: 13.3% Undervalued

The most followed narrative puts Li Auto’s fair value at $22.16 versus the last close at $19.21, and ties that gap directly to execution on its next product and technology cycle.

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 heavily on faster earnings growth, firmer margins and a richer earnings multiple built on those forecasts.

Result: Fair Value of $22.16 (UNDERVALUED)

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

However, there are clear watchpoints. These include pressure on margins from higher R&D and capital spending, as well as intense competition that could limit pricing power and volumes.

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

Another View: Earnings Multiple Sends a Different Signal

The popular narrative sees Li Auto as 13.3% undervalued at $19.21 versus a fair value of $22.16. Yet the current P/E of 118.8x is far above the estimated fair ratio of 34.1x, the Global Auto industry at 17.1x, and peers at 33.7x. This points to valuation risk if sentiment cools.

For investors, the key question is whether future earnings and margins can close that gap fast enough to justify paying such a premium today, or if patience around a more modest entry point might be warranted.See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

The mixed signals on value, growth and sentiment make this a stock where your own judgment really matters. Take a close look at the full picture and weigh the 1 key reward and 1 important warning sign

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If Li Auto has your attention, do not stop here. Broader ideas can help you compare, pressure test your thinking and spot opportunities you might otherwise miss.

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.

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