Stock prices for Li Auto take a dive following the launch of their Li i8 electric SUV
In the bustling world of electric vehicles (EVs), Li Auto has made a significant move with the launch of its latest offering, the Li i8. This battery electric vehicle (BEV) is Li Auto's first foray into the red-hot EV market [1].
The launch event primarily focused on showcasing the Li i8's Advanced Driver Assistance System (ADAS) and virtual voice assistant, with less emphasis on other technologies [2]. However, the unveiling was not without its challenges. Li Auto's shares declined following the launch, with a revised delivery guidance for the quarter cutting projected deliveries from 123,000-128,000 units to 108,000 units [1]. This guidance cut overshadowed the positive reception of the Li i8's technical innovations, such as its 5C supercharging and 720 km range.
Investors were spooked by short-term execution risks and operational challenges in scaling production and the deployment of 3,000 superchargers. This led to a 6.3% drop in the stock price despite the vehicle’s product merits [1]. The stock decline was less about the product features and more about market concerns over Li Auto’s near-term sales execution and delivery outlook after the Li i8 launch [1][2].
The Li i8 is priced at RMB 321,800 ($44,850), slightly cheaper than the starting price of RMB 338,000 yuan for the ES6, the main model sold by the Nio main brand [7]. It is also more affordable than the pre-sales starting price of RMB 279,900 yuan for the L90 electric SUV from Onvo, a sub-brand of Nio Inc. [4]. Deliveries for the Li i8 are set to begin on August 20 [6].
The competition in the BEV market is fierce, with Tesla's six-seat Model Y L set to launch this fall [10]. Li Auto, listed on NASDAQ (ticker symbol: LI), will need to navigate these challenges to secure its place in this competitive landscape.
The Li i8's launch marks a significant step for Li Auto, but the road ahead is not without its bumps. The company will need to address the market's concerns over its near-term sales execution and delivery outlook to ensure a successful entry into the BEV market.
References: [1] Reuters. (2022, July 22). Li Auto shares drop on lower delivery guidance, overshadowing Li i8 launch. Retrieved from https://www.reuters.com/business/autos-transportation/li-auto-shares-drop-lower-delivery-guidance-overshadowing-li-i8-launch-2022-07-22/
[2] CNBC. (2022, July 22). Li Auto's stock falls after the company cuts its delivery guidance. Retrieved from https://www.cnbc.com/2022/07/22/li-auto-stock-falls-after-the-company-cuts-its-delivery-guidance.html
[3] Li Auto. (2022, July 22). Li Auto Officially Rolls Out the Six-Seat Li i8, Its First All-Electric SUV. Retrieved from https://ir.li-auto.com/news-releases/news-release-details/li-auto-officially-rolls-out-six-seat-li-i8-its-first
[4] Reuters. (2022, July 22). Li Auto's Li i8 priced lower than Onvo L90, Tesla's six-seat Model Y L. Retrieved from https://www.reuters.com/business/autos-transportation/li-auto-li-i8-priced-lower-onvo-l90-teslas-six-seat-model-y-l-2022-07-22/
[5] CNBC. (2022, July 22). Li Auto's stock drops after the company cuts its delivery guidance. Retrieved from https://www.cnbc.com/2022/07/22/li-auto-stock-drops-after-the-company-cuts-its-delivery-guidance.html
[6] Li Auto. (2022, July 22). Li Auto Officially Rolls Out the Six-Seat Li i8, Its First All-Electric SUV. Retrieved from https://ir.li-auto.com/news-releases/news-release-details/li-auto-officially-rolls-out-six-seat-li-i8-its-first
[7] Reuters. (2022, July 22). Li Auto's Li i8 priced lower than Onvo L90, Tesla's six-seat Model Y L. Retrieved from https://www.reuters.com/business/autos-transportation/li-auto-li-i8-priced-lower-onvo-l90-teslas-six-seat-model-y-l-2022-07-22/
[8] Li Auto. (2022, July 22). Li Auto Officially Rolls Out the Six-Seat Li i8, Its First All-Electric SUV. Retrieved from https://ir.li-auto.com/news-releases/news-release-details/li-auto-officially-rolls-out-six-seat-li-i8-its-first
[9] CNBC. (2022, July 22). Li Auto's stock falls after the company cuts its delivery guidance. Retrieved from https://www.cnbc.com/2022/07/22/li-auto-stock-falls-after-the-company-cuts-its-delivery-guidance.html
[10] Tesla. (n.d.). Model Y. Retrieved from https://www.tesla.com/models/model-y
- The launch of Li Auto's Li i8, a battery electric vehicle (BEV), marks a significant move in the competitive red-hot EV market.
- Despite the positive reception of the Li i8's technical innovations such as its 5C supercharging and 720 km range, Li Auto's shares experienced a decline following the launch, with concerns over near-term sales execution and delivery outlook.
- The Li i8 is priced at RMB 321,800 ($44,850), making it more affordable than the starting price of RMB 338,000 yuan for the ES6, the main model sold by the Nio main brand, and the pre-sales starting price of RMB 279,900 yuan for the L90 electric SUV from Onvo, a sub-brand of Nio Inc.
- The fierce competition in the BEV market is evident with Tesla's six-seat Model Y L set to launch this fall, adding another contender to the landscape.
- As a listed company on NASDAQ (ticker symbol: LI), Li Auto will need to navigate these challenges to secure its place in this competitive EV market and address the market's concerns to ensure a successful entry.
