<p>Shares of <strong>Tesla Inc.</strong>‘s (NASDAQ:TSLA) Chinese rival Li Auto Inc. (NASDAQ:LI) have seen its Benzinga Edge value score surge to 93.52 percentile, revealing a glaring disconnect between its battered equity price and fundamental worth.</p>



<h2><strong>Deep Fundamental Value Amid Market Selloff</strong></h2>



<p>While short, medium, and long-term price trends remain heavily pressured, value score expansion comes after a punishing year for the EV manufacturer, with shares tumbling 42.73% over the past 12 months.</p>



<p><strong>Benzinga Edge Stock Rankings</strong>' composite value metric—which evaluates a stock’s relative worth by comparing market price to underlying assets, earnings, and operating performance—indicates that the stock has become severely underpriced.</p>



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<h2><strong>Morgan Stanley Sees About 61% Upside</strong></h2>



<p>Wall Street powerhouse <strong>Morgan Stanley</strong> is maintaining an Overweight rating and a $26.00 price target—representing a staggering 60.69% upside from its recent closing price of $16.18. </p>



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<h2><strong>Product Catalysts And $1 Billion Safety Net</strong></h2>



<p>Following a 16.97% sequential decline in April deliveries, Li Auto is unleashing fresh product catalysts. The company officially launched its highly anticipated, premium 6-seat family SUV, the Li L9, on May 15, 2026, with deliveries commencing immediately.</p>



<p>Furthermore, downside risks are also insulated by Li Auto’s balance sheet, which boasts over RMB100 billion in cash reserves and a newly authorized $1 billion share buyback program funded entirely via cash flow.</p>



<h2><strong>High-Stakes Earnings Ahead</strong></h2>



<p>All eyes now turn to May 28, when Li Auto is scheduled to report its next financial update. As analysts have tempered expectations to an estimated $3.14 billion in revenue, the discounted valuation provides a risk-reward setup for long-term investors tracking the Chinese EV player.</p>



<h2><strong>LI Stock Tumbles In 2026</strong></h2>



<p>LI shares have fallen by 6.31% on a year-to-date basis, and it is down by 8.33% year-to-date. Meanwhile, the Nasdaq Composite index was up 13.06% YTD.</p>



<p>Over the last month and the year, LI has declined by 13.52% and 42.73%, respectively. It has traded in a 52-week range of $15.64 to $32.03, and it was lower by 1.24% in premarket on Thursday.</p>



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<p><strong><em>Disclaimer:</em></strong><em> This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.</em></p>



<p><em>Image via Shutterstock</em></p>

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<p>Li Auto's stock is considered underpriced, with a value score rising to the 93.52 percentile, according to Morgan Stanley, which sees a 61% upside potential. Despite a 42.73% decline over the past year, the company has a strong balance sheet with over RMB100 billion in cash and a $1 billion buyback program. Li Auto is set to report earnings on May 28, with analysts estimating $3.14 billion in revenue.</p>

- Li Auto Inc.'s shares have a Benzinga Edge value score of 93.52 percentile, indicating a significant disparity between the stock price and its fundamental value, despite a 42.73% drop in the last year.  
- Morgan Stanley projects a 60.69% upside potential with a price target of $26.00, while the company recently launched the Li L9 SUV and has a solid balance sheet with over RMB100 billion in cash.  
- As Li Auto prepares to report earnings on May 28, analysts expect $3.14 billion in revenue, creating a potentially favorable risk-reward scenario for investors.

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First Trust S-Network Future Vehicles & Tech ETF

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MORGAN STANLEY DEP SHS REPSTG 1/1000TH PFD SER Q

MORGAN STANLEY DEP SHS REPS 1/1000 7.125% PFD E

MORGAN STANLEY NON-CUM DEP SH REP 1/1000 PFD SER I

MORGAN STANLEY 4.875 DEP SHS REP 1/1000 NCUM PFD SR L

MORGAN STANLEY 6.5%DEP SHS REPSTG 1/1000 NON CUM SER P

MORGAN STANLEY DEP SHS REPS 1/1000 PFD SER 'A'

MORGAN STANLEY DEP SHS REPR 1/1000TH INT PFD SER 'F' FX

MORGAN STANLEY DEP SHS REP 1/1000 NON-CUM PFD STK SER K

Tesla Rival Li Auto's Stock Remains Underpriced As Value Score Rises— Morgan Stanley Sees 61% Upside Potential