There’s no getting away from the scale of China’s sustainability ambitions. The nation’s ESG investing market is expected to increase at a CAGR of 21.7% by 2030, and China’s burgeoning electric vehicle (EV) industry is expected to be at the forefront of heightened investor interest. 

With US interest in sustainability waning with the climate-skeptic Trump administration in the White House, Chinese ESG firms have been handed a clear run towards market dominance in some of the world’s fastest-growing industries. 

It’s for this reason that investors may find plenty of potential in looking to US-listed EV manufacturers like Li Auto looking forward. 

China’s EV industry is currently experiencing plenty of challenges due to extreme overcapacity, which has brought severe price competition that’s eroding profits throughout manufacturers. However, the sheer scale of innovation has grown alongside competitors, and it’s becoming increasingly clear that whichever company emerges as a market leader amidst the chaos can have a strong case to grow substantially moving forward. 

With Li Auto’s i6 EV set to launch in September, priced to compete with midsize SUVs like the Tesla Model Y and Xiaomi YU7, we may see the Nasdaq-listed manufacturer put its best case forward to become the world’s best electric vehicle stock. 

Can the i6 Push Li Auto Higher? 

Li Auto has performed well since its US listing in 2020, with the stock finishing the first half of 2025 more than 70% higher than its launch price. However, LI has also experienced some volatility on Wall Street, owing to shifting perceptions regarding sustainability stocks and intense competition in China’s EV market. 

Analysts remain split on the short-term prospects for Li Auto. The stock was upgraded by analysts from Daiwa in September to Buy from Outperform, with a $30.50 price target. However, just days earlier, DBS and Nick Lai from J.P. Morgan downgraded the stock to Hold, issuing a HK$100.00 price target for Li Auto. 

Li Auto has faced plenty of pricing pressure and heavy competition among rivals due to the congested nature of China’s EV market in recent months, but fresh optimism among some investors has been channeled into the upcoming launch of the i6, a five-seat midsize SUV designed with a spacious interior. 

The i6 is expected to be priced between 230,000 to 300,000 yuan (c, $32,300 to $42,100), putting the vehicle into direct competition with the likes of the Tesla Model Y and Xiaomi YU7. 

As a leading manufacturer when it comes to building smart vehicles, the Li i6 will also be equipped with a roof-mounted LiDAR and the NVIDIA Drive Thor centralized car computer chip. 

Given that Li Auto also holds plans to expand its charging infrastructure with 4,000 supercharging stations throughout China by 2025, the launch of the i6 is a real statement of intent for a manufacturer that’s seeking to overcome growing challenges throughout the nation’s automotive industry. 

Crackdowns on EV Firms Cloud Future

Investors ready to speculate on the potential of Li Auto may be concerned about a government crackdown on the EV sector. 

In a recent joint notice issued by six agencies, including the Ministry of Industry and Information Technology and the Cyberspace Administration of China, regulators have begun a three-month campaign to curb the practices used by EV firms to allegedly mislead consumers and distort competition. 

Accusations of attempted rival smear campaigns have worried regulators, with Li Auto embroiled in controversy for using selective data disclosures or unofficial rankings to fuel online buzz. 

The crackdown on electric vehicles has been caused by China’s successful initiatives focused on stimulating growth in clean energy sectors. To illustrate the nation’s focus on sustainability, China issued $1 billion worth of green bonds in 2015, but by 2019, issuance had ballooned to $31 billion. 

As a result of China’s positive attitude towards clean energy, as well as the nation’s strong domestic supply chain, more sustainable energy firms are looking to build a presence in China. 

However, intensified competition has meant that some industries have become far more competitive. Yet, with average salaries in China being a lot lower than that of the US, China has the edge - especially when it comes to the auto industry. For example, the average salary of a mechanical engineer is between $17,000 and $34,000 annually, whereas in the US, that figure would be at least 3 times higher. 

Long-Term Optimism for Li

While Li Auto has shown some signs of weakness in recent weeks, falling from a high of $31.15 in July and settling at around $26, the long-term outlook appears to be a little rosier for the EV stock. 

Li Auto’s share price formed a death cross pattern as 50-day and 200-day moving averages crossed each other, pointing towards more short-term struggles as China’s congested EV market spells further uncertainty. 

However, the stock price has also shown an inverse head and shoulders pattern, which is commonly associated with more long-term gain for the stock. 

Although investors will be watching China’s highly competitive EV industry closely for opportunities, Li Auto may see some success in the launch of its i6 SUV. In going toe-to-toe with Tesla’s Model Y, we may yet see the Nasdaq-listed stock build up ahead of steam in a complex market environment.

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