Shares of Chinese electric vehicle maker Li Auto fell as much as 8.3% in Hong Kong on Monday and were nearly 5.6% lower on the Nasdaq, reflecting investors’ concerns that its first official price cuts will put pressure on profit margins. The company on Monday slashed prices by up to RMB 20,000 ($2,760) on its three extended-range hybrid vehicles, namely the L9, L8, and L7. Meanwhile, its first all-electric model, the Mega van, now costs RMB 30,000 lower at RMB 529,800 ($73,112), less than two months after its launch on March 1. Additionally, customers who just had their 2024 models delivered will also get the premium refunded, which could impact the firm’s cash flow as the startup delivered 80,400 vehicles during the first three months of this year. Tesla’s stock also tumbled 4% on Monday after its latest price cuts in several markets including the US, China, and Germany over the weekend. [TechNode reporting, Reuters]
