In response to the intensifying competition in the electric vehicle market, Li Auto Inc. has announced price cuts on four of its five models: the L7, Li L8, Li L9, and Li MEGA. The reductions range approximately 5%. Additionally, the company stated that customers who purchased these models earlier in 2024 will receive cash refunds.
This move follows similar actions taken by major EV manufacturers such as Tesla and BYD in China. Despite the recent launch of the Li L6 extended range electric vehicle, which sold over 10,000 units within its first 72 hours, Li Auto’s stock has experienced a decrease of more than 12% in the past five days and over 33% year-to-date. The stock’s performance is approaching its 52-week low of $21.47.
Based on recent coverage, Wall Street analysts collectively rate Li Auto as an Outperform. However, Jiong Shao of Barclays remains bearish, predicting a 30.36% decline in the stock’s value over the next year. The stock’s price action over the past three months reflects a negative shift in market sentiment, with a 16.2% decline indicating a decrease in investor confidence.
