Li Auto’s shares took a hit in Hong Kong, dropping 5.3 percent to HK$97.35, marking a cumulative decline of 21.8 percent since July 21. The relaunch of the Li i8 failed to boost investor confidence, with the stock entering a technical bear market.
The decline comes after Li Auto began pre-sales of the Li i8 on July 17, causing shares to surge by 9.73 percent. However, the stock has been on a downward trend ever since. The official launch of the Li i8 on July 29 offered three variants – Pro, Max, and Ultra – with starting prices ranging from RMB 321,800 to RMB 369,800. Despite a price reduction for the Max variant to RMB 339,800, investors remain skeptical.
The pricing strategy was criticized for being uncompetitive compared to Onvo’s L90 electric SUV, launched around the same time. Onvo’s L90, starting at RMB 265,800 including the battery pack, overshadowed Li Auto’s offerings. Li Auto’s decision to discontinue the Pro and Ultra variants in favor of a single Max variant with additional paid options did little to alleviate concerns.
Founder and CEO Li Xiang claimed that pre-orders for the Li i8 surpassed 30,000 units, although the company has not disclosed firm order numbers. This public relations setback comes on the heels of a controversy surrounding the launch of the Li Mega MPV.
As Li Auto grapples with declining stock prices and stiff competition in the electric vehicle market, the future remains uncertain. Deliveries of the Li i8 are set to begin on August 20, but whether this will be enough to turn the tide for the company remains to be seen. Investors and industry observers will be closely watching how Li Auto navigates these challenges in the coming months.
