Li Auto Adjusts First-Quarter Delivery Forecast Amid Demand Decline

The electric vehicle manufacturer revises its delivery estimate to 76,000-78,000 units, citing challenges with its Li Mega minivan and strategic missteps.

• Li Auto's stock drops after the company reduces its first-quarter delivery estimate from 100,000-103,000 to 76,000-78,000, attributing the adjustment to lower-than-expected order intake.
• The revision is partly blamed on strategic missteps with the launch of the Li Mega, the company's first pure electric vehicle, which was priced significantly higher than competitors.
• CEO Li Xiang acknowledges the need for a recalibrated strategy focusing on core user groups and cities with stronger purchasing power, moving away from a sales volume and competition-driven approach.
• The company's shares fell by approximately 7.6%, continuing a downward trend with a nearly 12% loss in value for the year 2024.
• Other Chinese EV stocks and major players like Tesla also experienced declines, highlighting a broader impact on the EV market.

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