Pricing is not "surprising enough," Morgan Stanley predicts: the Li Auto i6 may become a "slow-burn" model.
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Li Auto has avoided a "shock price" strategy and did not choose the route of fierce price competition. This might result in the i6 model becoming another "slow starter" product.
On September 29, according to Wind Pursuit Trading Desk, a recent report from Morgan Stanley shows that Li Auto’s newly launched L6 model pricing strategy did not bring a "pleasant surprise", with a starting price of 249,800 yuan, the same as the L6 Pro, and only 30,000 yuan lower than the L6 Max.
The analyst team led by Tim Hsiao expects that this relatively conservative pricing strategy may lead the i6 to repeat the trajectory of the i8, becoming another "slow starter" model.
However, Morgan Stanley believes that despite the relatively conservative pricing strategy, the product’s technological strength and Li Auto’s brand influence may still drive sales growth, and the recent steady sales increase of the MEGA and i8 models has proven the solid foundation of Li Auto’s product capabilities.
Therefore, the firm maintains its "Overweight" rating on Li Auto, with a target price of 139 Hong Kong dollars, representing a 39% upside from the current share price.
i6 Pricing is Rational but Lacks Impact
Morgan Stanley notes that, in comparison with competitors, the i6 faces fierce competition in the same price range.
Compared to Xiaomi YU7 (254,000-330,000 yuan), Tesla Model Y (264,000-314,000 yuan), AITO M7 (250,000-380,000 yuan), XPeng G7 (196,000-226,000 yuan), LeDao L60 (207,000-256,000 yuan), and Zeekr 7X (230,000-270,000 yuan), the i6’s pricing is at an intermediate level.
Morgan Stanley points out that despite the relatively conservative pricing strategy, the product’s technological strength and Li Auto’s brand influence may still drive sales growth.
It is reported that this model offers both rear-wheel drive and all-wheel drive versions, with standard features including the AD Max intelligent driving system based on Nvidia Thor chip, lidar, and 5C charging capabilities.
Notably, users who order before October 31 can receive a 10,000 yuan discount, as well as free optional features worth 25,000 yuan, including air suspension, an in-car refrigerator, and electric suction doors.
Morgan Stanley states that the i6 is equipped with a 3000mm wheelbase, CLTC range of up to 720 km, offering competitiveness among products of the same class.
The technical highlights of this model focus on the intelligent driving system and charging efficiency, which are expected to become its differentiation advantages in the fierce market competition.
According to previous articles by Jianshi, Li Auto’s founder Li Xiang said during an earnings call that the i6 "will become the most competitive product in the large five-seat SUV market", and emphasized the i6’s core competitive advantages:
VLA intelligent driving system, excellent performance and interior space, unique exterior design, and comprehensive adaptability to both urban and rural driving scenarios.
The firm expects that the i series (i6+i8) will exceed 50,000 units sold in 2025, with i8’s monthly sales exceeding 6,000 units in Q4 and i6 exceeding 8,000 units per month.
Meanwhile, the recent steady increase in sales of the MEGA and i8 models provides strong evidence of Li Auto’s product strength. Thus, Morgan Stanley maintains an optimistic outlook on Li Auto, stating:
Even if the i6’s early sales performance is somewhat "slow to heat up," the model is expected to gradually establish a solid position in the market thanks to its comprehensive product strength and brand influence.
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