Li Auto Inc LI shares are trading lower by 3.60% to $39.02 Monday morning. Shares of Chinese EV stocks are trading lower after competitor Tesla Inc lowered some Model Y prices in China.
Tesla's decision to lower Model Y prices directly impacts Li Auto, as both companies operate in the Chinese EV market. This intensified competition could lead investors to question Li Auto's ability to maintain its market share against a formidable competitor like Tesla.
Tesla's pricing strategy adjustments could raise questions about the overall demand dynamics within the Chinese EV market. Investors might interpret Tesla's actions as a response to broader economic conditions, potentially affecting Li Auto's stock.
What Happened?
Tesla announced in a Weibo post that it has cut the starting prices on both Model Y Long Range and Performance versions by RMB 14,000. While the Long Range will now start at RMB 299,900 ($41,403), Performance will now be priced at RMB 349,900 ($48,306), the post said.
The company also announced a limited-time insurance subsidy for inventory Model 3 rear-wheel drive vehicles of RMB 8,000 starting Monday...Read More
According to data from Benzinga Pro, Li Auto has a 52-week high of $47.33 and a 52-week low of $12.52.
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