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Li Auto recently reported that cumulative deliveries of its flagship Li MEGA pure-electric MPV have surpassed 30,000 units, alongside new MEGA Home and Ultra editions featuring upgraded LiDAR, NVIDIA Thor-U–based driver assistance, and CATL’s Qilin 5C battery technology.
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At the same time, the company is closing about 100 underperforming stores and shifting toward lower-cost AutoPark formats and partner-led outlets in smaller cities, underscoring a push to improve sales efficiency while extending its geographic reach.
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Next, we examine how Li Auto’s combination of MEGA delivery milestones and retail network optimization may influence its broader investment narrative.
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For Li Auto, the core belief for shareholders is that the company can turn its premium EV and range-extended line-up, software capabilities and expanding model portfolio into sustained, profitable scale in a crowded China market. The latest MEGA delivery milestone and refreshed trims support that product story, but they sit alongside clear pressure points: shrinking margins, a swing to losses in Q3 2025, and guidance for lower near term deliveries and revenue. The store closures and shift toward AutoParks and partner-led outlets look material for near term catalysts, because they speak directly to cost discipline and sales efficiency at a time when short sellers are more active and the share price has lagged. Taken together, this news slightly tilts the balance between execution risk and efficiency-driven upside.
However, one key operational risk stands out that shareholders should not ignore. Li Auto’s shares have been on the rise but are still potentially undervalued by 23%. Find out what it’s worth.
Eight fair value views from the Simply Wall St Community span roughly US$21.88 to US$39.04 per share, reflecting very different expectations. Set against Li Auto’s recent losses and sales guidance cuts, this spread underlines why many market participants are focused on execution risks and the impact of retail footprint changes on future performance.
Explore 8 other fair value estimates on Li Auto – why the stock might be worth over 2x more than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include LI.
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