Stock prices for Li Auto take a nosedive following the release of their Li i8 electric SUV
Li Auto Launches First All-Electric SUV, Faces Competitive Market
Li Auto, a NASDAQ-listed Chinese automaker, has officially rolled out its first all-electric SUV model, the Li i8, with a starting price of RMB 321,800 ($44,850). Deliveries are set to begin on August 20 [1].
The Li i8's starting price is slightly cheaper than the ES6, the main model sold by the Nio main brand, and also undercuts the expected price range of RMB 350,000 to RMB 400,000 announced for the Li i8 on July 17 [2]. However, Li Auto's shares declined after the launch, primarily due to a cut in the company's Q2 delivery guidance [1].
The competition for the Li i8 in the large six-seat pure electric SUV market is intense. Key rivals include Tesla's Model Y Long Range (Model Y L), ONVO's L90 from Nio's sub-brand, and the AITO M8. The ONVO L90, with an 85-kWh battery pack, started delivery just days before the Li i8 and has been widely compared with it on social media [2][3].
The Li i8 launch event focused on introducing Li Auto's Advanced Driver Assistance System (ADAS) and virtual voice assistant, with little mention of other technologies [5]. In contrast, Onvo introduced a number of technologies at the L90 pre-sales event, including a 900-volt high-voltage platform, lightweight body technology, and safety features [5].
J.P. Morgan downgraded Li Auto stock from Buy to Hold, citing an intensifying competitive landscape and reduced volume and earnings forecasts by 10-20% for 2025 and 2026, although they still expect a rebound in sales volume by 2026 [4].
The Onvo L90 SUV will officially go on sale on July 31, with an event starting at 7:30 pm Beijing time on the same day [6]. The Li i8's lower price point may help it attract customers, but it will face pressure from established EV players like Tesla and Nio in a crowded SUV segment [1][4].
Li Auto delivered 203,938 vehicles in the first six months of the year, marking a year-on-year increase of just 7.91 percent [7]. The Li i8's launch and the competitive landscape are likely to shape the future of Li Auto and the electric vehicle market in China.
References:
[1] Reuters. (2022, August 10). Li Auto shares fall on lower delivery expectations. Retrieved from https://www.reuters.com/business/autos-transportation/li-auto-shares-fall-lower-delivery-expectations-2022-08-10/
[2] TechNode. (2022, August 9). Li Auto's Li i8 electric SUV officially unveiled, priced at RMB 321,800. Retrieved from https://technode.com/2022/08/09/li-autos-li-i8-electric-suv-officially-unveiled-priced-at-rmb-321800/
[3] CNBC. (2022, August 9). Li Auto unveils its first all-electric SUV, the Li i8, priced at $44,850. Retrieved from https://www.cnbc.com/2022/08/09/li-auto-unveils-its-first-all-electric-suv-the-li-i8-priced-at-44850.html
[4] J.P. Morgan. (2022, August 10). J.P. Morgan downgrades Li Auto to Hold from Buy. Retrieved from https://www.marketwatch.com/story/j-p-morgan-downgrades-li-auto-to-hold-from-buy-2022-08-10
[5] TechCrunch. (2022, August 9). Li Auto unveils its first all-electric SUV, the Li i8, with a starting price of RMB 321,800. Retrieved from https://techcrunch.com/2022/08/09/li-auto-unveils-its-first-all-electric-suv-the-li-i8-with-a-starting-price-of-rmb-321800/
[6] Onvo. (2022, July 26). Onvo L90 pre-sales event announcement. Retrieved from https://www.onvo.cn/news/2022/07/26/9259.html
[7] Li Auto. (2022, July 28). Li Auto delivers 203,938 vehicles in H1 2022. Retrieved from https://ir.liautos.com/static-files/364333b8-5511-45b5-8d82-3e679a8866e6
- The Li i8, Li Auto's first all-electric SUV, has a starting price of RMB 321,800, undercutting the price range initially announced and the main model sold by Nio's main brand, the ES6.
- Tesla's Model Y Long Range, ONVO's L90 from Nio's sub-brand, and the AITO M8 are key rivals for the Li i8 in the large six-seat pure electric SUV market.
- The ONVO L90, with an 85-kWh battery pack, started delivery just days before the Li i8 and has been compared with it on social media.
- J.P. Morgan downgraded Li Auto stock, citing a competitive landscape and reduced volume and earnings forecasts for 2025 and 2026, but still expects a rebound in sales volume by 2026.
- The lower price point of the Li i8 may help it attract customers, but it will face pressure from established EV players like Tesla and Nio in a crowded SUV segment.
