Shares of Li Auto decline further following the reintroduction of the i8 model
News Article: Li Auto's Li i8 Relaunch Fails to Impress Investors
The Li Auto Li i8, the company's first all-electric SUV, was relaunched yesterday, but the event failed to reassure investors. The relaunch came just one week before the SUV's official launch, and since July 21, Li Auto's shares have seen a 21.8% decline.
The original launch of the Li i8 offered three variants, priced between RMB 321,800 and RMB 369,800. However, the pricing was viewed as uncompetitive, especially compared to rival Onvo L90, which was cheaper and boasted more advanced tech features like battery swapping.
In an attempt to boost sales, Li Auto discontinued two variants and unified the model into a single Max trim. The price was reduced to RMB 339,800, a move interpreted by analysts as a disguised discount rather than a strategic repositioning.
The lack of clear product differentiation and strategic foresight undermined investor confidence. Some experts described the adjustments as hasty and reactive to market weakness.
Negative, repetitive social media posts targeting Li Auto owners on platforms like Weibo and WeChat further damaged brand perception. The company is currently embroiled in a controversy after an i8 crash test, trying to downplay this controversy.
The launch was also set against a backdrop of slowing growth and a 39.7% year-on-year decline in July deliveries, raising concerns about the company’s momentum in a highly competitive Chinese EV market.
The combination of sluggish sales, competitive pricing pressure, unclear marketing, and adverse social media sentiment created an investor perception of lackluster demand and strategic missteps.
Deliveries of the Li i8 will still begin on August 20. The starting prices of the three variants are RMB 321,800, RMB 349,800, and RMB 369,800, respectively. Consumers can now obtain vehicles with the same configuration as the Ultra variant through paid options, with the total cost amounting to RMB 349,800, a reduction of RMB 20,000 compared to the Ultra variant.
Despite the challenges, Li Auto's founder, chairman, and CEO Li X announced in a video on Douyin that pre-orders for the Li i8 have exceeded 30,000 units. Whether this momentum will translate into long-term success remains to be seen.
- The EV market in China is highly competitive, with Li Auto facing pressure from rivals like Onvo, who offer cheaper and more advanced tech features, such as battery swapping.
- Li Auto attempted to boost sales of the Li i8 by discontinuing two variants, unifying the model into a single Max trim, and reducing its price to RMB 339,800.
- However, this price reduction was seen by analysts as a disguised discount rather than a strategic repositioning, and the lack of clear product differentiation further undermined investor confidence.
- Negative social media posts targeting Li Auto owners on platforms like Weibo and WeChat, as well as a controversy surrounding a recent i8 crash test, have further damaged the brand's perception.
- Despite these challenges, Li Auto's CEO Li X announced that pre-orders for the Li i8 have exceeded 30,000 units, raising questions about the company's long-term success.
- The financial sector and technology industry will closely watch Li Auto's delivery numbers and sales performance moving forward, as the company navigates sluggish sales, competitive pricing, and adverse sentiment.
