Li Auto's i9 Launch: Should Investors Buy, Sell, or Hold LI Stock?

Li Auto faced significant headwinds in Q2 2026 with revenues falling 15.1% and vehicle margins collapsing to 9.4% from 19.4% year-over-year due to lower deliveries, reduced average selling prices, and higher input costs during a product portfolio refresh. The company swung to operating and net losses despite launching its flagship Li i9 SUV and maintaining strong cash reserves of RMB87.5 billion. Analysts recommend selling the stock citing near-term fundamental weakness, negative earnings revisions, and valuation concerns.