Li Auto Could Face Margin Pressure -- Market Talk

Dow Jones

May 14, 2025

0720 GMT - Li Auto may face some near-term margin pressure, Daiwa's Kelvin Lau writes in a note. The analyst expects the Chinese automaker's vehicle gross margin to fall to 19% in 1Q and be squeezed further in 2Q. As for its gross margin, he doesn't expect much of a recovery in 2H due to the coming launch of a new fully electric model, which will likely be margin dilutive. Lau adds that the carmaker may lower battery costs further or leverage its economies of scale to manage costs better. Daiwa maintains a buy rating on the stock and raises the target price to $32.50 from $23.40 following signs of progress in U.S.-China trade talks. Li Auto's ADRs last closed at $27.96. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

May 14, 2025 03:20 ET (07:20 GMT)

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One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2535971092"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2535971092\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2535971092?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-05-14 15:20","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2535971092","market":"nz","top_or_hot":-1,"title":"Li Auto Could Face Margin Pressure -- Market Talk","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0720 GMT - Li Auto may face some near-term margin pressure, Daiwa's Kelvin Lau writes in a note. The analyst expects the Chinese automaker's vehicle gross margin to fall to 19% in 1Q and be squeezed further in 2Q. As for its gross margin, he doesn't expect much of a recovery in 2H due to the coming launch of a new fully electric model, which will likely be margin dilutive. Lau adds that the carmaker may lower battery costs further or leverage its economies of scale to manage costs better. Daiwa maintains a buy rating on the stock and raises the target price to $32.50 from $23.40 following signs of progress in U.S.-China trade talks. Li Auto's ADRs last closed at $27.96. (jiahui.huang@wsj.com; @ivy_jiahuihuang) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 14, 2025 03:20 ET (07:20 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Li Auto Could Face Margin Pressure -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nLi Auto Could Face Margin Pressure -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-05-14 15:20</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0720 GMT - Li Auto may face some near-term margin pressure, Daiwa's Kelvin Lau writes in a note. The analyst expects the Chinese automaker's vehicle gross margin to fall to 19% in 1Q and be squeezed further in 2Q. As for its gross margin, he doesn't expect much of a recovery in 2H due to the coming launch of a new fully electric model, which will likely be margin dilutive. Lau adds that the carmaker may lower battery costs further or leverage its economies of scale to manage costs better. Daiwa maintains a buy rating on the stock and raises the target price to $32.50 from $23.40 following signs of progress in U.S.-China trade talks. Li Auto's ADRs last closed at $27.96. (jiahui.huang@wsj.com; @ivy_jiahuihuang) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 14, 2025 03:20 ET (07:20 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4555","symbol_name":"新能源车","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2535971092","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2535971092","pubTimestamp":1747207200,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0720 GMT - Li Auto may face some near-term margin pressure, Daiwa's Kelvin Lau writes in a note. The analyst expects the Chinese automaker's vehicle gross margin to fall to 19% in 1Q and be squeezed further in 2Q. As for its gross margin, he doesn't expect much of a recovery in 2H due to the coming launch of a new fully electric model, which will likely be margin dilutive. Lau adds that the carmaker may lower battery costs further or leverage its economies of scale to manage costs better. Daiwa maintains a buy rating on the stock and raises the target price to $32.50 from $23.40 following signs of progress in U.S.-China trade talks. Li Auto's ADRs last closed at $27.96. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4555":"新能源车","EVS.SI":"MSCI China Electric Vehicles and Future Mobility ETF-NikkoAM","BK4551":"寇图资本持仓","LI":"理想汽车","BK4099":"汽车制造商","BK4526":"热门中概股","BK4588":"碎股","BK4585":"ETF&股票定投概念","BK4563":"昨日强势股","BK4548":"巴美列捷福持仓","BK4503":"景林资产持仓"},"translate_title":"理想汽车可能面临利润压力——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EVS.SI":0.6,"LI":1},"content_text":"0720 GMT - Li Auto may face some near-term margin pressure, Daiwa's Kelvin Lau writes in a note. The analyst expects the Chinese automaker's vehicle gross margin to fall to 19% in 1Q and be squeezed further in 2Q. As for its gross margin, he doesn't expect much of a recovery in 2H due to the coming launch of a new fully electric model, which will likely be margin dilutive. Lau adds that the carmaker may lower battery costs further or leverage its economies of scale to manage costs better. Daiwa maintains a buy rating on the stock and raises the target price to $32.50 from $23.40 following signs of progress in U.S.-China trade talks. Li Auto's ADRs last closed at $27.96. (jiahui.huang@wsj.com; @ivy_jiahuihuang) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  May 14, 2025 03:20 ET (07:20 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}