On December 4, HSBC Research highlighted that, owing to Li Auto's (LI.O) less-than-ideal product lineup, it anticipates a quarter-over-quarter decrease in the company's automotive gross profit margin for the fourth quarter, potentially nearing a break-even point. Looking ahead to next year, HSBC Research acknowledges that many of the short-term negative factors have already been factored into the stock price; however, the outlook for the upcoming year remains clouded with uncertainty. Considering the intense market competition, HSBC Research has revised downward its profit projection for Li Auto this year to RMB 921 million. Additionally, it has cut its profit forecasts for 2026 and 2027 by 38% and 31%, correspondingly. Consequently, HSBC Research has downgraded Li Auto's rating from 'Buy' to 'Hold', slashing its U.S. stock target price from $30.3 to $18.6 and its Hong Kong stock target price from HK$118 to HK$83.