In a report issued on May 9, Morgan Stanley noted that Li Auto's (02015.HK) latest L-series models have undergone substantial configuration enhancements without any corresponding price increases, aligning with market anticipations. The question now heating up discussions is whether these upgraded configurations, particularly in autonomous driving (AD) capabilities, will suffice to compete effectively in a fiercely competitive market without price adjustments. The market eagerly awaits to see if monthly sales can rebound to an average of around 50,000 units in the second half of the year. Morgan Stanley maintains that the current market price implies a forward P/E ratio below 20 times for 2025, rendering the stock's risk-reward profile highly attractive. This assessment is further bolstered by the launch of the new L-series on May 8 and the anticipated introduction of BEV models this summer. While the weaker-than-expected first-quarter results may exert short-term pressure, the market has already factored in these adjustments, reflecting a balanced outlook.