Jefferies analyst Johnson Wan initiated coverage of Li Auto with a Buy rating and $20.66 price target. While Wan expects a "challenging year" for China’s automakers – citing the "honeymoon stage of early NEV adoption" coming to an end, an intensified competition under a price war led by Tesla (TSLA), and the removal of EV subsidies and rising lithium prices – the analyst calls Li his "favorite NEV startup." He believes investors’ worries on the cannibalization between L9 and L8 are overdone as their customer bases differ and "the former’s customers typically have much deeper pockets," Wan tells investors.
Published first on TheFly
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