Li Auto Shares Hit New Lows as Pure Electric Vehicle Strategy Faces Mounting Challenges
Li Auto closed down 3.27% on Nasdaq on November 5, 2025, extending losses that have pushed both its U.S. and Hong Kong-listed shares to multi-month lows near levels last seen in April when tariff concerns weighed on the stock.
The Chinese electric vehicle maker's share price has undergone two distinct downward trends since July, coinciding with the launch of its pure electric models. Li Auto's Nasdaq-listed shares fell from approximately 31 in mid−July to 22 by late August, briefly recovering to 27 ahead of the i6 launch in late September before sliding to 19.81 currently.
Market observers note the timing of these declines aligns closely with the debut of the company's highly anticipated pure electric vehicles, the i8 in July and the i6 in September, suggesting investor skepticism about the models' market performance.
Li Auto delivered 31,767 vehicles in October 2025, down 38% year-over-year from 51,443 units and 6.4% from September's 33,951 units. While the company does not disclose model-specific sales data, the overall decline indicates the new pure electric offerings have failed to expand or even maintain the automaker's market share.
The i6, positioned as Li Auto's volume model, reportedly generated strong initial interest with over 70,000 locked orders by late October. However, the company attributed slower-than-expected deliveries to production capacity constraints. Previously, Li Auto made emergency adjustments to the i8 just one week after launch, reducing the lineup from three variants to one with increased features and lower pricing, widely interpreted as a response to weak demand.
Further compounding concerns, a 2024 Li Mega vehicle caught fire in Shanghai on October 23. The incident sparked controversy when the owner's lawyer disputed Li Auto's official account, particularly regarding door functionality during the emergency.
On October 31, Li Auto announced a recall of 11,411 Mega vehicles produced between February 18 and December 27, 2024, citing inadequate coolant corrosion protection that could cause battery thermal runaway in extreme cases. The swift seven-day timeline from incident to recall raised questions about the severity of underlying safety issues.
The Mega's troubled history began with widespread criticism of its unconventional design, which Li Auto and founder Li Xiang attributed to malicious attacks. The controversy delayed the company's pure electric strategy by a year.
Analysts suggest Li Auto's fundamental challenge lies in differentiation, as the distinctive features that drove success in its extended-range vehicles—spacious interiors and premium amenities—lack competitive moats, with rivals now offering comparable or superior alternatives.