Exciting news from Li Auto has sent its stock prices climbing. The Chinese electric vehicle manufacturer is riding high with a 12% surge in its shares this Tuesday, following the release of images of its pioneering electric SUV, the i8. Specialized in extended-range EVs, Li Auto is enjoying a 22% uplift in its stock since the start of 2025. Morgan Stanley’s analyst, Tim Hsiao, noted in a recent report that we can expect to see the i8 unveiled in April at the Shanghai Auto Show, with the first deliveries slated for the summer. However, the company is still keeping some details under wraps.
Adding to the anticipation, Hsiao pointed out that while seasonal trends might buoy fourth-quarter outcomes, stakeholders are keen to see Li Auto’s forecasts for the year’s overall performance and insights into its upcoming models. Both these factors could act as significant influencers for the stock’s future moves. Hsiao has given an “overweight” rating to the stock, predicting a price of $32 per share, which suggests a potential 21% uptick from its Monday closing of $26.36.
It’s worth mentioning that some of the stock’s rise could be attributed to a short squeeze. As Li Auto, like others in the industry, tackles hurdles in 2025, some investors have bet against the company. Typically, these investors borrow shares, aiming to gain from a price drop by buying back at a lower cost. But a quick hike in stock prices can lead to a rush to buy, as they scramble to cover their positions and minimize losses. Hsiao believes that the recent surge is mainly due to short covering, alongside some shifts within the sector, with investors chasing underperformers as new opportunities present themselves.
Interestingly, many anticipated that Li Auto would first unveil details about the i6 and i7 before the i8, keeping a close eye on how the i8 might stand out in terms of pricing. On another note, UBS analyst Paul Gong highlighted the company’s ventures beyond automobiles earlier this month. Li Auto is also positioned as a player in artificial intelligence, applying AI in both autonomous driving technologies and its manufacturing processes. Gong, maintaining a “buy” rating, set a $40 price target, indicating a potential 52% increase.
