Li Auto's cheaper relaunch of its flagship MEGA MPV, priced RMB50,000 below the prior version, is an attempt to revive a model whose sales stalled after a 2025 vehicle fire. Hong Kong investors welcomed the move, sending the shares up as much as 4.7 percent even as BofA Securities trimmed its target price to HKD58.9.
Li Auto-W (02015.HK) climbed as much as 4.7% to HKD48 in early Hong Kong trading after the automaker launched its new-generation Li MEGA flagship MPV at RMB509,800, with deliveries starting this week.
The advance came even as BofA Securities said Li Auto's second-quarter results slightly beat expectations but trimmed its target price to HKD58.9 on lower sales forecasts, according to AASTOCKS. The stock last quoted at HKD47.32, up 3.18 percent, on turnover of HKD126 million across 2.65 million shares.
The new MEGA, priced RMB50,000 below the previous version, is offered in a single "Home" trim. Orders opened Sept. 2 and deliveries begin this week, with a right-hand-drive version planned later this year for Hong Kong, Macau and Thailand. The launch follows a stronger August, when Li Auto delivered 37,679 vehicles, up 32 percent from a year earlier and 24 percent from July's 30,468, lifting cumulative deliveries to 1.80 million.
The stock still trades near lows after a weak second quarter, when revenue fell 15 percent year over year to RMB25.7 billion and vehicle margin nearly halved to 9.4 percent from 19.4 percent, producing a RMB1.7 billion net loss. Li Auto guided third-quarter revenue of RMB26.6 billion to RMB28.0 billion, below Street estimates, and has repurchased about $632 million of stock under a $1 billion program.
The MEGA has been a slow seller since its debut, with just 3,179 units delivered from January through July — about 1.4 percent of total deliveries — after a vehicle fire in the second half of 2025 disrupted demand. The cheaper relaunch is an attempt to revive the model as Li Auto leans on its Li L series extended-range SUVs for volume in a crowded premium EV market that also includes Nio and XPeng.
The divergence between the two listings shows the challenge. While the Hong Kong shares jumped on the launch, the U.S.-listed ADR slipped 0.7 percent to about $11.88, just above its 52-week low of $11.65, after falling 11 percent in August. The stock has dropped 30 percent this year.
September deliveries will determine whether the launch translates into volume. July-plus-August volume of 68,147 means Li Auto needs roughly 27,000 to 32,000 units this month to hit its third-quarter delivery guidance of 95,000 to 100,000, with the MEGA relaunch a swing factor in that outcome.
This article is for informational purposes only and does not constitute investment advice.
