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Investing.com-- China’s electric vehicle stocks slid on Wednesday as investor concerns intensified over mounting competition, with Li Auto (NASDAQ:LI) (HK:2015) suffering the sharpest losses following the unveiling of its new flagship SUV, the Li i8.
Li Auto shares plunged nearly 12% in Hong Kong trading to HK$105.60. The event follows the launch of the six-seat, battery-electric Li i8, priced at RMB 321,800 (about US $44,800), which analysts viewed as above market expectations.
Premium pricing in a saturated segment amplified fears of margin pressure and heightened rivalry from both domestic rivals and Tesla Inc (NASDAQ:TSLA).
Broader Chinese EV stocks softened amid worry that excessive competition may erode profitability.
NIO Inc (HK:9866) shares dropped 4.2%, while Xpeng (HK:9868) stock declined nearly 5%. Geely Automobile (HK:0175) stock traded 3.5% lower on Wednesday.
Earlier this month, China’s cabinet pledged to curb “irrational” competition in the EV industry, promising cost oversight, price monitoring, and urging automakers to honor supplier commitments and shift toward innovation over discounting.
More recently, regulators unveiled draft amendments to national pricing law, banning below-cost selling and improper algorithm‑based pricing practices, in efforts to stabilize the overheated industry.