U.S. listed Chinese electric vehicle company Li Auto LI will deliver its compact SUV Li Ones without radars and install them later when it is in stock again, cnEVPost reported on Friday.
What Happened: Li Auto will follow the new delivery model to tide over the ongoing semiconductor shortage due to which the company sold fewer models in September despite the high demand.
The automaker installs the electric SUVs with five millimeter-wave radars for assisted driving functions, up from one previously. It will now deliver those vehicles with one front millimeter-wave radar and two rear millimeter-wave radars.
The remaining two radars would be installed between December and February, as per the report.
Customers who would like to opt for models with all five radars installed would have to wait until December, while others get early delivery.
See Also: Ford Mulls Shipping Vehicles Without Chips To Dealers To Keep Plants Running
Why It Matters: Li Auto last month lowered its third-quarter delivery guidance by 500-1,500 units as its Malaysia-based supplier making those radar chips faced COVID-19 related disruption. Rival Nio Inc NIO has been facing similar shortages.
Earlier this year, Ford Motor Co F had explored plans to ship vehicles sans chips to dealers as it looks to mitigate the inventory pileup of unfinished vehicles and keep the manufacturing plants running, as per an Automotive News report.
Price Action: Li Auto shares closed 5.07% higher at $28.78 on Thursday.
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Photo: Courtesy of Li Auto
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