Tesla Rival Li Auto's Stock Remains Underpriced As Value Score Rises— Morgan Stanley Sees 61% Upside Potential

Shares of Tesla Inc.‘s (NASDAQ:TSLA) Chinese rival Li Auto Inc. (NASDAQ:LI) have seen its Benzinga Edge value score surge to 93.52 percentile, revealing a glaring disconnect between its battered equity price and fundamental worth.

Deep Fundamental Value Amid Market Selloff

While short, medium, and long-term price trends remain heavily pressured, value score expansion comes after a punishing year for the EV manufacturer, with shares tumbling 42.73% over the past 12 months.

Benzinga Edge Stock Rankings' composite value metric—which evaluates a stock’s relative worth by comparing market price to underlying assets, earnings, and operating performance—indicates that the stock has become severely underpriced.

Morgan Stanley Sees About 61% Upside

Wall Street powerhouse Morgan Stanley is maintaining an Overweight rating and a $26.00 price target—representing a staggering 60.69% upside from its recent closing price of $16.18.

Product Catalysts And $1 Billion Safety Net

Following a 16.97% sequential decline in April deliveries, Li Auto is unleashing fresh product catalysts. The company officially launched its highly anticipated, premium 6-seat family SUV, the Li L9, on May 15, 2026, with deliveries commencing immediately.

Furthermore, downside risks are also insulated by Li Auto’s balance sheet, which boasts over RMB100 billion in cash reserves and a newly authorized $1 billion share buyback program funded entirely via cash flow.

High-Stakes Earnings Ahead

All eyes now turn to May 28, when Li Auto is scheduled to report its next financial update. As analysts have tempered expectations to an estimated $3.14 billion in revenue, the discounted valuation provides a risk-reward setup for long-term investors tracking the Chinese EV player.

LI Stock Tumbles In 2026

LI shares have fallen by 6.31% on a year-to-date basis, and it is down by 8.33% year-to-date. Meanwhile, the Nasdaq Composite index was up 13.06% YTD.

Over the last month and the year, LI has declined by 13.52% and 42.73%, respectively. It has traded in a 52-week range of $15.64 to $32.03, and it was lower by 1.24% in premarket on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock