LI - Why Li Auto Stock Is Tumbling Today
2024-04-22 12:56:24 ET
Extending a slide that saw shares of Li Auto (NASDAQ: LI) plunge more than 10% last week, the electric car stock is driving lower today as investors wrestle with news that the company is slashing prices on its vehicles as well as news that an analyst has lowered the price target of Li Auto's stock.
As of 11:55 a.m. ET, shares of Li Auto have fallen 5.8%, recovering slightly from their earlier decline of 8.6%.
Li Auto is lowering the price tags on five electric vehicle (EV) models as it tries to remain competitive with its EV peers in China. According to Reuters, Li Auto is cutting prices between approximately $2,500 and $4,100 on its Li L7, Li L8, Li L9, and Li MEGA models. Customers who had bought these vehicles earlier in 2024 will receive refunds. The company's decision to lower prices comes amid actions from EV manufacturers Tesla and BYD , which have also lowered the price tags on their vehicles recently.
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Why Li Auto Stock Is Tumbling Today