Li Auto Shares Plunge 8.32% on JPMorgan and Macquarie Downgrades Amid EV Market Competition and Subsidy Fears Surging Trading Volume Ranks 311th

On August 27, 2025, Li Auto (LI) fell 8.32% with a trading volume of $0.32 billion, a 104.62% surge from the prior day, ranking 311th in market activity. The decline followed a series of analyst downgrades from JPMorgan and Macquarie, which cited intensifying competition in China’s EV market and looming government subsidy expiration as key risks. Both firms adjusted their ratings to “underperform,” with Macquarie setting a $21 price target, implying an 11.33% downside from the current price. The moves reflect growing skepticism over Li’s ability to maintain pricing power amid subsidy phaseouts, which could amplify margin pressures despite recent revenue growth of 1.1% year-on-year to $3.53 billion.

Analysts highlighted Li’s strategic response, including the launch of the Li i8, a six-seat battery-electric SUV, as a measure to diversify its product lineup and integrate in-house technology. This initiative aims to counteract potential demand shifts and strengthen market positioning. However, institutional investors remain cautious, with hedge funds holding 9.88% of shares and recent stake adjustments by funds like Elevation Point Wealth Partners and MAI Capital Management. The company’s financial metrics, including a 0.12 debt-to-equity ratio and $24.8 billion market cap, underscore its liquidity but also underscore the sensitivity of its valuation to earnings volatility.

The backtest results segment reveals unrelated developments: ENGO Eyewear launched a new smart eyewear model, Healthy Extracts expanded its health product line, and Chesapeake Utilities’ CEO maintained a $4 million net worth. Meanwhile, the global smart shelves market is projected to grow from $3 billion to $8.3 billion by 2027, and Palantir faces a class-action lawsuit over alleged misstatements. These updates span technology, health, and legal sectors but do not directly impact Li’s stock performance.