Why Li Auto Stock Is Down 10% Today

Li Auto Inc LI shares are trading lower by 10.4% to $27.53 during Monday’s session amid weakness in Chinese EV stocks. Weakness may be in anticipation of U.S. tariffs, expected to begin Tuesday. Potential tariffs raise concerns over higher production costs and potential barriers to Li Auto's global market ambitions.

What To Know: As a Chinese EV maker, Li Auto relies on global supply chains, including semiconductor and battery components. Increased costs could pressure margins or lead to higher consumer prices. Additionally, trade tensions may deter American buyers from considering Chinese-made vehicles.

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Investors may worry that China may retaliate, further complicating Li Auto's production. The broader EV sector, already dealing with supply chain disruptions, faces new uncertainties.

Unless Li Auto finds ways to offset higher costs, such as by localizing supply chains, its growth prospects may be impacted. The market also remains cautious as geopolitical tensions escalate ahead of the tariff's implementation.

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How To Buy LI Stock

By now you're likely curious about how to participate in the market for Li Auto – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Li Auto, which is trading at $27.29 as of publishing time, $100 would buy you 3.66 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.