Li Auto Inc. (LI) shares are slipping in Monday's premarket trading after the Chinese electric vehicle maker reported July deliveries that came in slightly below last year's numbers. But here's the thing: the year-over-year decline is shrinking, and that might be the more interesting story.

The company delivered 30,468 vehicles in July 2026. That's down 0.9% from 30,731 a year ago and 1.4% from June's 30,895. Cumulative deliveries now stand at 1,764,155 vehicles. The year-over-year drop of 0.9% is a big improvement from June's 14.84% decline, suggesting the sales slowdown is easing.

Li Auto also had some product news in July. It launched the new Li L6, and cumulative deliveries of its Li L9 surpassed 300,000 units. The company expanded into Kazakhstan and pushed out an over-the-air software update in late July that enhanced its intelligent assisted-driving capabilities.

Meanwhile, rivals are posting stronger numbers. XPeng Inc. (XPEV) delivered 38,027 vehicles in July, up 4% year-over-year. NIO Inc. (NIO) had a standout month, delivering 35,934 vehicles, a 71.0% jump from a year earlier.

So what's the technical picture for LI stock? At $13.50, the stock closed above its 20-day simple moving average of $12.54 and just above its 50-day SMA of $13.40. That 50-day level can act like a near-term "line in the sand" for trend followers. But the bigger trend is still bearish: price remains below the 100-day SMA ($15.73) and the 200-day SMA ($17.03), and a death cross (50-day below 200-day) from September 2025 is still in place.

Momentum, though, looks like it's trying to turn. The MACD is above its signal line and the histogram is positive, which typically means downside pressure is easing even if the longer trend hasn't fully flipped.

Key levels to watch: resistance at $13.65, near the 50-day EMA, a common area where rallies can stall in downtrends. Support at $12.54, aligning with the 20-day SMA, a level bulls often defend during pullbacks.

Looking ahead, Li Auto is expected to report its next financial update on August 27, 2026. Analysts estimate a loss of 1 cent per share, down from 10 cents, and revenue of $3.73 billion, down from $4.22 billion. The stock carries a Hold rating with an average price target of $15.03. Recent analyst moves include HSBC lowering its forecast to $15.60 (Hold) on June 10, Barclays cutting to $14.00 (Equal-Weight) on May 29, and Macquarie upgrading to Neutral on May 29.

In premarket trading Monday, Li Auto shares were down 2.79% at $13.25.