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Bullish Case: Li Auto's recent price cuts signal aggressive market pursuits, enhancing market share prospects. The firm's advanced EV technologies and strong financial guidance for upcoming quarters, supported by price adjustments, could catalyze investor sentiment and stock revaluation.


Bearish Case: Recent price cuts at Li Auto point to heightened competition, squeezing margins and profitability. With broader EV market saturation and recent cuts in delivery forecasts, investor confidence may further erode, putting downward pressure on the stock price.


Potential Outcomes:

1. Li Auto's market share increases due to aggressive pricing, boosting long-term profitability (45% chance).

2. Ongoing price wars in the EV market lead to margin compression, affecting short-term profits (55% chance).


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April 23, 2024


Li Auto Forecast

LI        Li Auto
Price Forecast: BULLISH    Price Action: MEAN REVERTING (?)











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