Li Auto Shares Drop After Launch of Updated L9 SUV

By Jiahui Huang

Shares of Chinese automaker Li Auto are on course for their worst day in a year, after the launch of its upgraded flagship SUV failed to quell investor concerns about competition in China's auto market.

The stock fell 14% in Hong Kong early Monday, on track for its largest one-day drop since April last year. That more than reversed the 4.3% share-price gain on Thursday amid high expectations for the all-new Li L9.

Li Auto launched its upgraded L9 sport-utility vehicle in two variants on Friday, with the Livis priced at 509,800 yuan and the Ultra at 459,800 yuan, equivalent to nearly $75,000 and about $67,500, respectively.

Analysts said Monday's share-price drop was partly due to lofty expectations being unmet, with investors appearing unconvinced that Li Auto's updated SUV will help it revive sales.

Citi described the new L9 as "not a game changer," saying in a note that the car isn't more competitive than other rival Chinese models with similar configurations.

The potential share-price boost from the model launch has also been priced in, Jefferies analysts said.

"The new L9 retains a solid value proposition that should support pricing and help ease near-term margin pressure," Jefferies wrote in a note. However, "rising competition will likely make it more difficult to deliver another standout hit," it said.

Li Auto has been facing a series of challenges, from a slowdown in demand for plug-in hybrids to a lukewarm response to its battery EV lineup. The company had been relying on robust hybrid sales to drive revenue, but competition in the segment has intensified, with rivals like Zhejiang Leapmotor and Huawei-backed auto brands coming to the fore.

China's auto market has also been grappling with slowing demand. Retail sales of passenger cars in April fell 21.5% from a year earlier to 1.38 million units, the China Passenger Car Association data showed.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

May 18, 2026 00:45 ET (04:45 GMT)