Recent News
On August 14, 2025 J.P. Morgan downgraded Li Auto from Overweight to Neutral and cut its price target to $28. On August 19, 2025 Bernstein lowered its rating to Market Perform with a $26 target. On August 22, 2025 Macquarie moved to Underperform and trimmed its target to $21.
Technical Analysis
ADX reads 16.76, indicating no measurable trend strength; that reduces conviction for directional breakouts and favors range-bound interpretation relative to the intro and valuation backdrop.
DI+ stands at 29.29 with a peak-and-reversal pattern, while DI- sits at 23.49 and shows an increasing profile; those readings combine into a bearish directional tilt against the current WMDST valuation.
MACD sits at 0.08 with a peak-and-reversal trend, while the MACD signal line sits at -0.01; the MACD currently sits above its signal line, providing a short-term bullish trigger despite the longer-run momentum peak-and-reversal signal.
MRO registers 3.69 (positive), which implies price currently sits above the modeled target and that downward pressure exists relative to valuation; that pressure aligns with the over-valued determination by WMDST.
RSI at 47.74 with a peak-and-reversal trend shows momentum loss near neutral territory, supporting the case for limited immediate upside and sensitivity to headlines noted above.
Price at $25.23 trades below the 200-day average of $25.83 and near the 20-day average of $25.35; the 12-day EMA shows a peak-and-reversal pattern, while Bollinger bands place the common trading range between $24.43 (lower 1σ) and $26.27 (upper 1σ). Volume today of 8,027,555 exceeds the 10-day average of 5,627,144, indicating elevated participation during recent directional reassessment.
Fundamental Analysis
Total revenue reached $30,245,613,000 with net income of $1,092,571,000, producing a net margin near 3.61%. YoY revenue growth registered -29.36% while revenue growth QoQ showed -140.20%, signaling recent top-line contraction on a year-over-year and sequential basis.
EBIT ran $1,338,760,000 with an EBIT margin of 4.43%, up 39.49% QoQ and up 14.81% YoY; that margin sits slightly below the industry peer mean of 4.98% and below the industry peer median of 8.49%, implying narrower operating cushion versus many peers.
Gross margin held at 20.06%, a YoY expansion of 2.87%. Operating margin measured 2.73% but showed a YoY decline of 29.08%, reflecting higher operating expense pressure despite improved gross margin.
EPS came in at $1.03 versus an estimate of $1.42, missing by $0.39 or -27.47%, producing an EPS surprise that reduced near-term earnings confidence embedded in consensus models.
Free cash flow recorded negative $3,036,219,000 with a free cash flow yield of -5.77%, though free cash flow yield improved sharply QoQ. Cash and short-term investments totaled $106,918,817,000, producing a negative enterprise value of roughly -$37,404,729,609 when offset against $16,915,920,000 total debt and the market cap of $52,598,167,391.
Leverage appears conservative on the balance sheet: debt-to-assets at 10.49% and debt-to-equity at 23.13%. Interest coverage stood at 26.90x, above the industry peer mean of 15.18x, reflecting substantial interest income and low financing strain.
Return metrics remain modest: return on equity at 1.49% sits below the industry peer mean of 5.30% and marginally below the industry peer median of 1.667%. Earnings growth shows conflicting signals; the headline earningsGrowth figure reads 66.13% while earningsGrowth year-over-year shows -24.42%, indicating volatile period-to-period comparisons that weigh on forward expectations.
WMDST values the stock as over-valued given the combination of margin pressure, EPS shortfall, negative free cash flow, and current market pricing against a large cash balance.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-28 |
| NEXT REPORT DATE: | 2025-11-25 |
| CASH FLOW | Begin Period Cash Flow | — |
| Operating Cash Flow | $ -3.04 B | |
| Capital Expenditures | — | |
| Change In Working Capital | $ -4.13 B | |
| Dividends Paid | — | |
| Cash Flow Delta | — | |
| End Period Cash Flow | — | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 30.2 B | |
| Forward Revenue | $ 5.4 B | |
| COSTS | ||
| Cost Of Revenue | $ 24.2 B | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | $ 2.8 B | |
| Total Operating Expenses | $ 29.4 B | |
| PROFITABILITY | ||
| Gross Profit | $ 6.1 B | |
| EBITDA | $ 1.3 B | |
| EBIT | $ 1.3 B | |
| Operating Income | $ 827.0 M | |
| Interest Income | $ 496.5 M | |
| Interest Expense | $ 49.8 M | |
| Net Interest Income | $ 446.7 M | |
| Income Before Tax | $ 1.3 B | |
| Tax Provision | $ 192.0 M | |
| Tax Rate | 14.899 % | |
| Net Income | $ 1.1 B | |
| Net Income From Continuing Operations | $ 1.1 B | |
| EARNINGS | ||
| EPS Estimate | $ 1.42 | |
| EPS Actual | $ 1.03 | |
| EPS Difference | $ -0.39 | |
| EPS Surprise | -27.465 % | |
| Forward EPS | $ 0.39 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 161.3 B | |
| Intangible Assets | $ 939.2 M | |
| Net Tangible Assets | $ 72.2 B | |
| Total Current Assets | $ 123.5 B | |
| Cash and Short-Term Investments | $ 106.9 B | |
| Cash | $ 49.8 B | |
| Net Receivables | $ 85.7 M | |
| Inventory | $ 11.7 B | |
| Long-Term Investments | $ 2.0 B | |
| LIABILITIES | ||
| Accounts Payable | $ 50.0 B | |
| Short-Term Debt | $ 6.4 B | |
| Total Current Liabilities | $ 71.2 B | |
| Net Debt | — | |
| Total Debt | $ 16.9 B | |
| Total Liabilities | $ 87.7 B | |
| EQUITY | ||
| Total Equity | $ 73.1 B | |
| Retained Earnings | — | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 36.08 | |
| Shares Outstanding | 2.027 B | |
| Revenue Per-Share | $ 14.92 | |
| VALUATION | Market Capitalization | $ 52.6 B |
| Enterprise Value | $ -37.40 B | |
| Enterprise Multiple | -27.94 | |
| Enterprise Multiple QoQ | -44.485 % | |
| Enterprise Multiple YoY | -34.069 % | |
| Enterprise Multiple IPRWA | high: 120.276 mean: 16.767 median: 13.755 LI: -27.94 low: -76.086 |
|
| EV/R | -1.237 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.206 | |
| Asset To Liability | 1.84 | |
| Debt To Capital | 0.188 | |
| Debt To Assets | 0.105 | |
| Debt To Assets QoQ | 3.79 % | |
| Debt To Assets YoY | 1549.057 % | |
| Debt To Assets IPRWA | high: 0.631 median: 0.406 mean: 0.325 LI: 0.105 low: 0.009 |
|
| Debt To Equity | 0.231 | |
| Debt To Equity QoQ | 1.59 % | |
| Debt To Equity YoY | 1476.96 % | |
| Debt To Equity IPRWA | high: 3.556 median: 1.044 mean: 0.815 LI: 0.231 low: -2.058 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.719 | |
| Price To Book QoQ | -2.372 % | |
| Price To Book YoY | 1.493 % | |
| Price To Book IPRWA | high: 13.512 mean: 3.788 LI: 0.719 median: 0.067 low: -8.763 |
|
| Price To Earnings (P/E) | 25.418 | |
| Price To Earnings QoQ | -39.651 % | |
| Price To Earnings YoY | 27.07 % | |
| Price To Earnings IPRWA | high: 203.565 mean: 42.436 median: 40.911 LI: 25.418 low: -46.537 |
|
| PE/G Ratio | 0.384 | |
| Price To Sales (P/S) | 1.739 | |
| Price To Sales QoQ | -14.801 % | |
| Price To Sales YoY | 23.605 % | |
| Price To Sales IPRWA | high: 47.115 mean: 13.822 LI: 1.739 median: 0.198 low: 0.001 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 70.519 | |
| Forward PE/G | 1.066 | |
| Forward P/S | 9.741 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.766 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.187 | |
| Asset Turnover Ratio QoQ | 17.044 % | |
| Asset Turnover Ratio YoY | -12.906 % | |
| Asset Turnover Ratio IPRWA | high: 0.499 LI: 0.187 mean: 0.141 median: 0.131 low: 0.004 |
|
| Receivables Turnover | 392.199 | |
| Receivables Turnover Ratio QoQ | 54.032 % | |
| Receivables Turnover Ratio YoY | 45.602 % | |
| Receivables Turnover Ratio IPRWA | LI: 392.199 high: 15.67 mean: 2.449 median: 0.845 low: 0.517 |
|
| Inventory Turnover | 2.216 | |
| Inventory Turnover Ratio QoQ | -1.742 % | |
| Inventory Turnover Ratio YoY | -11.092 % | |
| Inventory Turnover Ratio IPRWA | high: 2.791 LI: 2.216 median: 2.02 mean: 1.84 low: 0.035 |
|
| Days Sales Outstanding (DSO) | 0.233 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -177.103 | |
| Cash Conversion Cycle Days QoQ | -849.718 % | |
| Cash Conversion Cycle Days YoY | -2.242 % | |
| Cash Conversion Cycle Days IPRWA | high: 281.771 median: 97.798 mean: 79.997 LI: -177.103 low: -195.852 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.578 | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 75.0 B | |
| Net Invested Capital | $ 81.3 B | |
| Invested Capital | $ 81.3 B | |
| Net Tangible Assets | $ 72.2 B | |
| Net Working Capital | $ 52.3 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.501 | |
| Current Ratio | 1.735 | |
| Current Ratio QoQ | -7.227 % | |
| Current Ratio YoY | -1.325 % | |
| Current Ratio IPRWA | high: 4.557 LI: 1.735 mean: 1.466 median: 1.218 low: 0.057 |
|
| Quick Ratio | 1.57 | |
| Quick Ratio QoQ | -8.737 % | |
| Quick Ratio YoY | -3.388 % | |
| Quick Ratio IPRWA | high: 4.421 LI: 1.57 mean: 1.206 median: 1.054 low: 0.076 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 12.636 | |
| Cost Of Debt | 0.255 % | |
| Interest Coverage Ratio | 26.896 | |
| Interest Coverage Ratio QoQ | 57.651 % | |
| Interest Coverage Ratio YoY | -4.796 % | |
| Interest Coverage Ratio IPRWA | high: 45.716 LI: 26.896 median: 17.914 mean: 15.177 low: -100.099 |
|
| Operating Cash Flow Ratio | -0.036 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 225.655 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -0.351 % | |
| Revenue Growth | 16.658 % | |
| Revenue Growth QoQ | -140.198 % | |
| Revenue Growth YoY | -29.358 % | |
| Revenue Growth IPRWA | high: 171.227 % LI: 16.658 % mean: 1.469 % median: -0.888 % low: -100.0 % |
|
| Earnings Growth | 66.129 % | |
| Earnings Growth QoQ | -181.371 % | |
| Earnings Growth YoY | -24.424 % | |
| Earnings Growth IPRWA | high: 164.286 % LI: 66.129 % median: 48.148 % mean: 42.431 % low: -66.667 % |
|
| MARGINS | ||
| Gross Margin | 20.059 % | |
| Gross Margin QoQ | -2.213 % | |
| Gross Margin YoY | 2.872 % | |
| Gross Margin IPRWA | high: 52.64 % LI: 20.059 % mean: 18.04 % median: 17.92 % low: -41.091 % |
|
| EBIT Margin | 4.426 % | |
| EBIT Margin QoQ | 39.489 % | |
| EBIT Margin YoY | 14.812 % | |
| EBIT Margin IPRWA | high: 31.17 % median: 8.49 % mean: 4.978 % LI: 4.426 % low: -544.208 % |
|
| Return On Sales (ROS) | 2.734 % | |
| Return On Sales QoQ | -13.835 % | |
| Return On Sales YoY | -29.079 % | |
| Return On Sales IPRWA | high: 30.743 % median: 8.602 % LI: 2.734 % mean: 1.591 % low: -550.805 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -3.04 B | |
| Free Cash Flow Yield | -5.772 % | |
| Free Cash Flow Yield QoQ | 79.589 % | |
| Free Cash Flow Yield YoY | 499.377 % | |
| Free Cash Flow Yield IPRWA | high: 26.113 % median: 26.113 % mean: 13.043 % LI: -5.772 % low: -88.246 % |
|
| Free Cash Growth | 78.499 % | |
| Free Cash Growth QoQ | -128.136 % | |
| Free Cash Growth YoY | -190.07 % | |
| Free Cash Growth IPRWA | high: 570.241 % median: 570.241 % mean: 330.6 % LI: 78.499 % low: -102.201 % |
|
| Free Cash To Net Income | -2.779 | |
| Cash Flow Margin | -8.449 % | |
| Cash Flow To Earnings | -2.339 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.676 % | |
| Return On Assets QoQ | 68.579 % | |
| Return On Assets YoY | -9.626 % | |
| Return On Assets IPRWA | high: 4.337 % median: 0.881 % mean: 0.742 % LI: 0.676 % low: -27.076 % |
|
| Return On Capital Employed (ROCE) | 1.486 % | |
| Return On Equity (ROE) | 0.015 | |
| Return On Equity QoQ | 65.083 % | |
| Return On Equity YoY | -14.775 % | |
| Return On Equity IPRWA | high: 1.202 mean: 0.053 median: 0.017 LI: 0.015 low: -0.423 |
|
| DuPont ROE | 1.507 % | |
| Return On Invested Capital (ROIC) | 1.401 % | |
| Return On Invested Capital QoQ | 63.668 % | |
| Return On Invested Capital YoY | -218.228 % | |
| Return On Invested Capital IPRWA | high: 11.036 % LI: 1.401 % median: 1.101 % mean: 1.064 % low: -25.139 % |
|