CLSA downgraded LI AUTO-W's rating due to a significant shift from profit to loss in the first quarter of 2026, driven by changes in product mix, destocking, and increased discounts. The company is expected to face challenges such as slower new model launches, inventory pressure, and higher spending on new businesses, leading to a substantial reduction in revenue and profit forecasts for 2026. Despite positive expectations for new flagship models, the overall sales growth momentum is anticipated to slow down this year.
