Li Auto (LI, Financials) is expected to see a significant boost in sales following the launch of its new i8 model, according to J.P. Morgan analysts.
Rising from Neutral to Overweight, the company almost quadrupled its price objective to $40, indicating a 29.2% increase from its latest trade price of $30.96 as of 11:04 AM EST on Friday.
With almost one-third of its volume derived from new battery electric car models, the i8 is expected to let Li Auto achieve 1.0 million unit sales by 2027. Strongly ingrained in the Chinese market, the corporation is expanding its product range with new battery electric vehicles additions and SUVs.
In Level 2+ semiautonomous driving technology, Li Auto has a competitive edge over other Chinese manufacturers, said J.P. Morgan analyst Nick Lai. The firm is also enhancing its charging network, a step anticipated to support its market position as the scene of new energy vehicles changes within China.
Delivery of the i8 is expected in the second half of 2025; it will first display at the Shanghai car show in late April. Focus on plug-in hybrid electric cars and extended-range electric vehicles by the firm is starting to pay off. Lai changed his former estimate that non-BEVs will account for 60% of China's NEV market by 2030 to now forecast PHEVs and EREVs would reach that figure by 2027.
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