LI - Why Li Auto Stock Keeps Going Down
2024-05-21 12:09:15 ET
Investors in Chinese automaker Li Auto (NASDAQ: LI) are having a rough month of May. After reporting a decline in sales Monday, which sent its shares tumbling double digits , the company announced Tuesday that it will delay releasing new all-electric SUV models until 2025. Shares of Li Auto stock reacted poorly to the news, falling 3.6% through 10 a.m. ET.
That makes six straight days of declines for Li stock.
A lack of electric chargers appears to be (at least) one culprit for Li's latest bad news. As Reuters reports, Li planned to unveil three new all-electric SUV models this year. (To date, Li has been primarily a hybrid electric carmaker .) But Li says it lacks "enough charging stations and enough incremental display spots (in our retail shops)" to support demand for the new models and will delay production until they're built.
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Why Li Auto Stock Keeps Going Down