Morgan Stanley: LI AUTO-W (02015) has reduced the price of the new MEGA model by 50,000 RMB, and sales are expected to gradually recover this month.

Morgan Stanley released a research report stating that LI AUTO-W (02015) has launched a new MEGA model, with a single configuration priced at 509,800 RMB, which is a decrease of 50,000 RMB compared to the 2025 MEGA Home. The firm maintains an overweight rating for Ideal Automotive, with a target price of 78.5 HKD, and expects monthly sales of MEGA to gradually recover, with additional benefits from the expansion into overseas markets. The new MEGA will begin deliveries this week, with the right-hand drive version planned for release by the end of this year in Hong Kong, Macau, Singapore, and Thailand. Morgan Stanley believes that the focus of this redesign is on handling performance and autonomous driving, rather than adjustments to the interior details. The new vehicle features drive-by-wire steering and a rear steering system, reducing the turning radius of the 5.35-meter-long MEGA from 6.2 meters to 5.5 meters, and is equipped with an 800V active anti-roll chassis, dual M100 chips, and four lidar sensors, providing a hardware foundation for ongoing OTA upgrades. The firm pointed out that the new MEGA adopts a single configuration with full standard equipment, which helps to lower decision-making costs for consumers while simplifying production and delivery processes. Meanwhile, the upcoming i9 model will become the next focus for supporting short-term sales and the growth of pure electric vehicles.