Li Auto's stock surged 5.03% intraday on Tuesday, as investors responded to the company's aggressive share repurchase program and sustained demand for its electric vehicles.

The rally was fueled by the company's ongoing large-scale buybacks, which have seen approximately 62 million shares repurchased since late May. On July 24 alone, Li Auto bought back over half a million shares, signaling strong management confidence in the company's value.

Product momentum also played a key role, with the Li i6 achieving over 20,000 monthly sales for four consecutive months and the new Li L6 commencing deliveries. Additionally, the Li L9 surpassed 300,000 cumulative deliveries and began localized production in Kazakhstan. Morgan Stanley reiterated an Overweight rating with a target price of HK$78.5, further boosting sentiment.