Stock prices for Li Auto take a dive following launch of their Li i8 electric SUV
In the bustling world of electric vehicles (EVs), Li Auto has entered the fray with its latest offering, the Li i8. The vehicle was officially unveiled in Beijing last evening, priced at RMB 321,800 ($44,850).
The Li i8 marks Li Auto's significant stride in the battery electric vehicle (BEV) market. However, the launch has been met with a mixed response, with the company's shares experiencing a notable decline.
Deliveries of the Li i8 are scheduled to begin on August 20. Yet, the stock has taken a hit, dropping about 6-8% following the launch. The market downturn can be attributed to concerns about the vehicle's premium pricing and potential delivery challenges in a highly competitive Chinese EV market.
Despite the Li i8's impressive specifications—a six-seat SUV boasting 536 hp, an impressive range of up to 720 km, and fast charging—the market perceives it as overpriced compared to competitors such as the Onvo L90 and Tesla's six-seat Model Y L.
The Onvo L90, priced under RMB 300,000, offers superior specifications, making it a formidable competitor. Li Auto's shares have seen a significant decline primarily due to these pricing concerns and delivery challenges.
Following market feedback, Li Auto has made adjustments to the i8. The company has reduced the price by around RMB 10,000 to RMB 349,800 for its main Max version, removed lower-end trims, and added features such as a better battery and sound system to improve value perception.
This adjustment aims to address criticisms about the car being "overpriced and under-equipped," signalling Li Auto’s attempt to better compete with rivals and regain investor confidence.
Meanwhile, Onvo has introduced a range of technologies at the L90 pre-sales event, including a 900-volt high-voltage platform, lightweight body technology, and safety features. In contrast, Li Auto's focus at the Li i8 launch event was on its Advanced Driver Assistance System (ADAS) and virtual voice assistant, with little mention of other technologies.
As of press time, Li Auto's shares in Hong Kong had fallen 10.34 percent to 107.5 Hong Kong dollars. The Li i8's starting price is RMB 41,900 yuan, or 14.97 percent, higher than the pre-sales starting price of the L90 electric SUV from Onvo.
In the first half of the year, Li Auto delivered 203,938 vehicles, showing a year-on-year increase of 7.91 percent. Despite this growth, the company faces stiff competition from players like BYD and Tesla.
Tesla will launch its six-seat Model Y L this fall. Nio, another significant player, focuses on cutting-edge battery technology and affordability at scale, while balancing premium features and competitive pricing to gain traction.
As the EV market continues to evolve, Li Auto will need to navigate these challenges to secure its position and regain investor confidence.
[1] Li Auto's Stock Decline after Li i8 Launch
[2] Li Auto's Li i8 Launch and Its Impact on the Stock Market
[3] Li Auto Relaunches the Li i8 to Address Market Concerns
[1] Li Auto's stock experienced a decline following the launch of the Li i8, with shares dropping around 6-8%, due to concerns about the vehicle's premium pricing and potential delivery challenges in the competitive Chinese EV market.
[2] The official launch of Li Auto's Li i8 in Beijing was met with a mixed response by the market, as the vehicle's pricing and potential delivery issues raised concerns amongst investors.
[3] To address these concerns, Li Auto made adjustments to the Li i8, reducing the price, removing lower-end trims, and adding features such as a better battery and sound system to improve value perception.
[4] As competitors like Onvo and Tesla introduce innovative technologies and affordable pricing strategies, Li Auto is under pressure to regain investor confidence and secure its position in the evolving EV market.
[5] Li Auto faces stiff competition not only from Tesla, which is set to launch its six-seat Model Y L this fall, but also from other players like BYD and Nio, which focus on affordable, cutting-edge technology, and premium features to attract customers.
