Li Auto shares dropped 5.3% to HK$97.35 in Hong Kong trading on Tuesday, extending their decline to 21.8% since July 21 and pushing the stock into a technical bear market.
The fall comes despite the official launch of the Li i8, the company’s first all-electric SUV.
The Li i8 debuted on July 29 with three variants—Pro, Max and Ultra—priced between RMB 321,800 and RMB 369,800. The starting price was cut by more than 8% from the company’s initial estimate, a common tactic in China’s competitive auto market, but analysts said the model faced pricing pressure from rival products, including Nio’s Onvo L90, which starts at RMB 265,800 including the battery pack.
Li Auto announced yesterday that only the Max variant of the Li i8 will remain, priced at RMB 339,800, while customers can add paid options to match the Ultra variant’s features for RMB 349,800.
CEO Li Xiang said in a video post that pre-orders for the SUV exceeded 30,000 units, but the company has not disclosed firm order numbers. Deliveries of the Li i8 are scheduled to begin on August 20.