China is boosting its electromobile industry with a proposed trade-in subsidy program of $8.9 billion for 2026. Consumer subsidies doubled in 2025 to $42.8 billion. This focus on stability benefits Chinese EV stocks like Nio, XPeng, BYD, and Li Auto. Li Auto, valued at $17.7 billion, faces challenges with declining revenue and margins. The company reported operating and net losses for the third quarter of 2025, with negative free cash flow. Analysts are cautious, giving LI stock a “Hold” rating consensus and a target price of $22.53, indicating a potential 30% gain.

Read more at Barchart: China Is Backing EV Stocks Again. Does That Make Li Auto a Buy for 2026?