---
title: "Citi: Cuts Li Auto-W target price to HKD 68, significantly lowers revenue and profit forecasts"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/288361185.md"
description: "Citi released a research report stating that it has cut the target price for Li Auto-W by more than half to HKD 68. Due to changes in the model mix, inventory reduction, and increased discounts, Li Auto's performance turned from profit to loss in the first quarter, recording a net loss of RMB 2.3 billion, or an adjusted net loss of RMB 2.1 billion. The bank expects that the challenges the company faces, such as a slowdown in the launch pace of new models, inventory pressure, and increased expenses for new businesses, may last longer than previously anticipated. The report pointed out that Li Auto's first-quarter sales reached 95,100 units, a year-on-year increase of 2.5%, but revenue fell by 11.4% year-on-year, mainly due to the impact of product cycle transitions and seasonal factors. During the same period, the average selling price (ASP) of vehicles dropped to RMB 226,000, leading to a vehicle gross margin of 6.1%, while the overall gross margin also declined to 7.9% due to subsidies and rising raw material costs. Nevertheless, the bank is optimistic about Li Auto's recently launched flagship model L9 Livis and the upcoming L8 Livis, expecting that high-margin models can improve the product mix and boost total sales to 434,100 units by 2026"
datetime: "2026-06-02T03:57:04.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/288361185.md)
  - [en](https://longbridge.com/en/news/288361185.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/288361185.md)
---

# Citi: Cuts Li Auto-W target price to HKD 68, significantly lowers revenue and profit forecasts

According to the Zhitong Finance APP, Credit Lyonnais has released a research report stating that it has cut the target price for Li Auto-W (02015) by more than half to HKD 68. Li Auto reported a net loss of RMB 2.3 billion in the first quarter, or an adjusted net loss of RMB 2.1 billion, due to changes in its model mix, inventory reduction, and increased discounts. The bank expects that the challenges the company faces, including a slowdown in the launch rhythm of new models, inventory pressure, and increased expenses for new businesses, may last longer than previously anticipated.

The report pointed out that Li Auto's first-quarter sales reached 95,100 units, a year-on-year increase of 2.5%, but revenue fell by 11.4% year-on-year, mainly due to the impact of product cycle transitions and seasonal factors. During the same period, the average selling price (ASP) of vehicles dropped to RMB 226,000, leading to a decline in vehicle gross margin to 6.1%, while the overall gross margin also decreased to 7.9% due to rising subsidies and raw material costs. Nevertheless, the bank is optimistic about Li Auto's recently launched flagship model L9 Livis and the upcoming L8 Livis, expecting that high-margin models can improve the product mix and boost total sales to 434,100 units by 2026

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