Morgan Stanley: Li Auto-W's order momentum will soon recover, reiterates "Overweight" rating

Morgan Stanley released a research report stating that Li Auto-W ADR and H shares both fell by 4%, with poor performance attributed to a slowdown in monthly cumulative sales. At the same time, investors are also concerned about the recent reduction in holdings by major shareholder Meituan-W founder Wang Xing. Morgan Stanley believes that with lowered expectations, the Li Auto team may offer more competitive pricing, which could bring surprises for the upcoming i8. Therefore, they reaffirmed the "Overweight" rating. The report indicated that due to intensified price competition and intervention from the Chinese government, some consumers are hesitant, resulting in a moderate start in June. Meanwhile, adjustments to Li Auto's channel strategy may also suppress recent sales momentum. Nevertheless, Morgan Stanley expressed confidence that this impact will be temporary, and order momentum will soon recover. They do not believe that the sluggish sales in June will disrupt the trend of operational recovery in the second half of the year, as the launch of new model cycles will help facilitate operational recovery