China’s Li Auto Inc. (NASDAQ:LI) said Tuesday its board has approved a share repurchase program of up to $1.0 billion.

The company will repurchase Class A ordinary shares and/or American depositary shares through March 31, 2027. The move comes as Li Auto seeks to reinforce investor confidence and support shareholder returns.

Chairman and Chief Executive Officer Xiang Li said, “The share repurchase program reflects our strong confidence in Li Auto’s strategic roadmap and future value creation, and will ultimately benefit the company and create value for our shareholders.”

Flexible Execution, Subject to Market Conditions

Li Auto said repurchases may occur periodically via open market transactions at prevailing prices, block trades, or other legally permitted methods. The timing and size of transactions will depend on market conditions and comply with Securities and Exchange Commission Rule 10b-18 and/or Rule 10b5-1.

The board will review the program regularly and may adjust, suspend, or terminate it. The company expects to fund the buyback using its existing cash reserves.

Shareholder Approval Framework in Place

At its annual general meeting on May 30, 2025, shareholders approved a general mandate allowing the board to repurchase shares. This 2025 Share Repurchase Mandate will remain in effect until the next AGM.

After the mandate expires, Li Auto said it will seek renewed shareholder approval to continue repurchases under the program.

Technical Analysis

LI is trading 2.1% above its 20-day SMA and 0.6% above its 100-day SMA, showing improving short-to-intermediate trend posture even after a choppy stretch. Shares are down 31.40% over the past 12 months and are positioned closer to their 52-week lows than highs within the $15.71 to $32.02 range.

The RSI is at 45.68, which sits in neutral territory and suggests momentum isn’t stretched in either direction. Meanwhile, MACD is at -0.1563 versus a signal line at -0.0565, keeping bearish pressure in place despite Tuesday’s bounce. The combination of neutral RSI (45.68) and bearish MACD (-0.1563 below -0.0565) suggests mixed momentum.

  • Key Resistance: $19.00
  • Key Support: $17.00

Earnings & Analyst Outlook

Li Auto is slated to provide its next financial update on May 28, 2026 (estimated).

  • EPS Estimate: 7 cents (Down from 13 cents)
  • Revenue Estimate: $3.14 billion (Down from $3.57 billion)
  • Valuation: P/E of 109.2x (Indicates premium valuation)

Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $24.66. Recent analyst moves include:

  • JP Morgan: Underweight (Raises Target to $15.50) (Mar. 13)
  • Jefferies: Downgraded to Hold (Lowers Target to $17.50) (Jan. 23)
  • Citigroup: Neutral (Lowers Target to $18.50) (Jan. 15)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Li Auto, highlighting its strengths and weaknesses compared to the broader market:

  • Value: 91.58 — Trading at a steep premium relative to peers.
  • Growth: 5.96 — Indicates weak growth prospects.
  • Momentum: 10.65 — Stock is underperforming the broader market.

The Verdict: Li Auto’s Benzinga Edge signal reveals a weak profile, with significant challenges in growth and momentum, suggesting that investors should approach with caution.

Top ETF Exposure

  • SPDR S&P Kensho Smart Mobility ETF (NYSE:HAIL): 2.22% Weight
  • Intelligent Livermore ETF (NASDAQ:LIVR): 3.01% Weight

Significance: Because LI carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

LI Price Action: Li Auto shares were up 4.90% at $17.97 at the time of publication on Tuesday, according to Benzinga Pro data.

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