Shares in Li Auto open with continued losses following the vehicle's i8 relaunch
The relaunch of Li Auto's first all-electric SUV, the Li i8, has not gone as planned. Despite the company's efforts to improve the product offering, investors remain unconvinced, leading to a 21.8% decline in Li Auto's stock price.
The initial market reception was muted, with reports suggesting only around 6,000 firm orders during the launch week, much lower than expected. This was further exacerbated by negative social media posts targeting Li Auto owners, which undermined confidence in the brand and product.
Moreover, the i8 was priced higher than rival models like Nio’s Onvo L90, which offered features such as battery-swap capability, making the i8 less competitive initially. Li Auto's strategic reversal, abandoning its multi-tiered trim strategy and adopting a single fully loaded configuration with a reduced price, was seen as a sign of weak demand and a troubled rollout.
The company's prior failure with the Li Mega MPV in 2024 also contributed to investor skepticism about the i8's success. Though the relaunch included technical upgrades like a 97.8 kWh battery with fast charging and standardized features previously optional, these were insufficient to restore investor confidence immediately.
Deliveries of the Li i8 will still begin on August 20, and the starting prices for the remaining variant, the Max, have been reduced to RMB 339,800. Consumers can now obtain vehicles with the same configuration as the Ultra variant through paid options, with a total cost of RMB 349,800. Li Auto has discontinued the Pro and Max variants, leaving only the Max variant in the market.
As of press time, Li Auto is down 5.3 percent in Hong Kong. The company's founder, chairman, and CEO Li X claimed in a video that pre-orders have exceeded 30,000 units, but the company has not disclosed the number of pre-orders or firm orders for the Li i8.
The controversy involving Li Auto and a truck maker continues to cast a shadow over the company, further complicating its efforts to regain investor confidence. The company faces aggressive delivery targets (8,000-10,000 units by September), but investors remain concerned about demand strength and execution risks after the initial disappointing response and social media negativity.
[1] Li Auto discontinues Pro and Max variants of the Li i8, leaving only the Max variant. [2] Deliveries of the Li i8 will still begin on August 20. [3] Consumers can now obtain vehicles with the same configuration as the Ultra variant of the Li i8 through paid options, with a total cost of RMB 349,800. [4] The starting price of the Li i8's Max variant has been reduced to RMB 339,800, a decline of at least RMB 28,200 from the estimated price range announced on July 17.
[5] Despite Li Auto's efforts to reduce costs and improve sales, its stock price continues to decline, reflecting the market's concerns about the company's position in China's rapidly growing electric vehicle industry. [6] The battery-swap capability offered by Nio's Onvo L90 is considered an edge, potentially attracting more customers in the automotive market. [7] The i8's launch week sales of around 6,000 orders are significantly lower than competitors in China's EV market, raising questions about the i8's competitiveness. [8] The reduced price of the Max variant of the Li i8, following Li Auto's strategic reversal, indicates the company's focus on restoring demand and mitigating concerns about weak sales. [9] Li Auto's history, with the precedent of the Li Mega MPV's failure in 2024, negatively impacts investor perceptions of the company's new EV offerings.
