Stock prices for Li Auto drop significantly following the unveiling of Li i8 electric SUV
In a recent event held in Beijing, Li Auto officially unveiled their latest offering, the six-seat Li i8, priced at RMB 321,800 ($44,850). However, the launch has been met with investor disappointment, primarily due to concerns about the vehicle's value proposition and competitiveness.
The Li i8 boasts advanced features such as 5C ultra-fast charging, a CLTC range of 720 km, and a premium six-seat design. Yet, it is seen as comparatively expensive, especially when stacked against competitors like Nio's Onvo L90, which starts at RMB 279,900 ($38,988). The Onvo L90 offers battery swapping and a richer technology feature set, and is set to go on sale on July 31, with deliveries beginning on August 1.
Investors have also expressed dissatisfaction because the launch focused heavily on the ADAS system and voice assistant, with fewer innovations in other areas compared to competitors emphasizing cutting-edge technology like 900-volt architecture and enhanced safety.
Li Auto aims to differentiate itself through its ultra-fast 5C charging capability, backed by China's largest supercharging network, vertical integration with in-house silicon carbide chips, and software-defined vehicle architecture. However, these advantages have yet to fully alleviate investor concerns over pricing and competitive edge.
The Li i8 will face stiff competition in the battery electric vehicle (BEV) large six-seat SUV segment. The Nio Onvo L90, Tesla Model Y L, and AITO M8 are among its main competitors.
Meanwhile, the Onvo L90's pre-sales event introduced a 900-volt high-voltage platform, lightweight body technology, and safety features. The Li i8, on the other hand, is slightly cheaper than the starting price of the ES6, the main model sold by the Nio main brand.
The Li i8 represents Li Auto's latest major effort in the BEV market. However, it comes at a time of slowing growth in the BEV market, and the vehicle will face pressure not only from the Onvo L90, but also from Tesla's six-seat Model Y L.
Li Auto's shares have been affected by the launch, with the company's American Depositary Shares (ADSs) closing down 6.20 percent at $27.38 overnight, marking the largest single-day decline since April 8. As of press time, Li Auto's shares in Hong Kong had fallen 10.34 percent to 107.5 Hong Kong dollars.
Despite the challenges, the Li i8's deliveries are set to begin on August 20. The vehicle is a significant step for Li Auto in the competitive BEV market, and it will be interesting to see how it fares against its rivals in the coming months.
- The Li i8, with its 5C ultra-fast charging, priced at RMB 321,800, faces stiff competition in the BEV market, particularly from the Nio Onvo L90, which offers battery swapping and a richer technology feature set at a lower price point.
- While the Li i8 boasts a CLTC range of 720 km and a premium six-seat design, it is seen as comparatively expensive, especially when compared to the Tesla Model Y L, another main competitor in the BEV large six-seat SUV segment.
- The Nio Onvo L90, slated for sales on July 31 with deliveries beginning on August 1, has introduced a 900-volt high-voltage platform, lightweight body technology, and safety features, further distinguishing itself in the BEV market.
- Li Auto's focus on ultra-fast 5C charging capability, vertical integration with in-house silicon carbide chips, and software-defined vehicle architecture has yet to alleviate investor concerns over pricing and competitive edge, as demonstrated by the company's stock performance following the launch.
- The Li i8, slightly cheaper than the starting price of the ES6, the main model sold by the Nio main brand, will enter the market amid slowing growth, pressuring the vehicle to perform well against competitors like the Onvo L90 and the Model Y L in the coming months.
