"Analysis Report" from Goldman Sachs: Ideal's third-quarter sales exceed guidance, rated as "Buy"

Morgan Stanley has released a research report stating that Li Auto (LI.US) delivered 36,100 vehicles in September, a 3% increase compared to the previous month, and has maintained this upward trend for eight consecutive months. The monthly shipments of L7, L8, and L9 models have consistently exceeded 10,000 units. The cumulative sales volume for the third quarter reached 105,000 vehicles, surpassing the company's guidance of 100,000 to 103,000 vehicles for the quarter. As of the end of September, Li Auto had 361 retail stores nationwide, with an increase of 15 stores compared to the previous month. On the other hand, Li Auto's competitor, Huawei, has seen strong and continuous demand for its Aito M7, with over 30,000 confirmed orders from September 12 to 30. Although Li Auto's order momentum remains strong, the increasingly fierce competition may force the company to adopt more aggressive promotional activities, which could limit the upside potential of its gross margin in the second half of the year. In addition, the market is closely watching the upcoming launch of Li Mega in December, which will be an important model for investors to evaluate Li Auto's strategy for its upcoming lineup of pure electric vehicles. The bank has given Li Auto an "overweight" rating with a target price of $53. (sl/w)