Pure electric vehicle models are expected to help double sales. JP Morgan raised its rating on Li Auto, Inc. Sponsored ADR Class A (LI.US) to "hold."

After Li Auto, Inc. Sponsored ADR Class A (LI.US) announced the information about its first pure electric SUV i8, JPMorgan upped its rating from "Neutral" to "Overweight" and adjusted the target price from $22 to $40. Analyst Nick Lai stated that Li Auto, Inc. Sponsored ADR Class A's second pure electric vehicle i8 not only defines and clarifies the company's long-awaited electric vehicle strategy, but also by 2027, its sales could double to around 1 million units, with over a third coming from new pure electric vehicle models. Lai said, "We believe Li Auto, Inc. Sponsored ADR Class A is ahead of most Chinese peers in L2+ semi-autonomous driving technology." Li Auto, Inc. Sponsored ADR Class A will launch a series of new pure electric vehicle products in the next 1-2 years and add similar SUV products to its existing range-extended electric vehicle product lineup. The i8 may make its official debut at the end of April at the Shanghai Auto Show, with deliveries expected in the second half of the year. These new features will strengthen its position while expanding Li Auto, Inc. Sponsored ADR Class A's charging network. Lai stated, "Since last year, a key argument we have had for the new energy vehicle market is that by 2030, non-pure electric vehicles will account for 60% of total car sales." He added that this forecast now seems somewhat conservative, as plug-in hybrid electric vehicles (PHEV) / range-extended electric vehicles (EREV) are expected to account for around 60% of total new energy vehicle sales by 2027.