12 Best Automotive Stocks to Invest in According to Analysts

Page 3 of 11

9. Li Auto Inc. (NASDAQ:LI)

Upside Potential: 21%

Number of Hedge Fund Holders: 26

LI Auto is a Chinese EV manufacturer focusing on extended-range electric vehicles (EREVs) and smart SUVs. The company is a pioneer in successfully commercializing extended-range electric vehicles. Its flagship models feature the proprietary range-extending gasoline engine that charges the battery, reducing range anxiety. The company is expanding into fully electric models with advanced driver-assistance features.

On February 7, Macquarie upgraded Li Auto (NASDAQ:LI) to Outperform from Neutral with a $29 price target. While the company’s Q4 vehicle deliveries missed the lower end of guidance, largely due to a higher mix of lower-priced L6 and L7 models, the firm believes potential sales weakness is already priced into shares. Despite concerns over seasonally weak premium EV sales, Macquarie sees lower downside risk at current levels, justifying the upgrade. The analyst expects Li Auto (NASDAQ:LI)’s electric SUV segment to stabilize, supporting long-term growth.

Page 3 of 11