Li Auto (NASDAQ:LI) stock is falling hard on Thursday after the Chinese electric vehicle (EV) company reduced its outlook amid weakening demand.
An update from Li Auto reveals that it now expects EV deliveries for the first quarter of 2024 to range from 76,000 to 78,000 units. That’s lower than its previous delivery guidance of 100,000 to 103,000 vehicles during the quarter.
Li Auto chairman and CEO Xiang Li highlighted a few of the reasons for the delivery outlook decrease. Let’s get into them real quick below!
LI Stock Down : Why Deliveries Are Falling
- First off, Li notes that the operating strategy of the Li MEGA was “mis-paced.”
- The CEO notes that the company treated it as if it was in the “1-to-10 scaling phase.”
- However, the executive notes that the MEGA is still in a “nascent 0-to-1 business validation period.”
- This change has the company focusing on its core user group and target cities.
- The second issue comes from Li Auto’s emphasis on sales volume and competition.
- Li notes that this will have it focus more on user value instead of competition.
With this news comes heavy trading of LI stock today. This has more than 9 million shares traded today. That’s already past its daily average of about 8.3 million units.
LI stock is down 7.6% as of Thursday morning. The shares are currently down 9% year-to-date (YTD).
Investors looking for more of the most recent stock market stories are in the right place!
We have all of the hottest stock market news worth reading about on Thursday! A few examples include an increased price target, layoffs for a financial giant and an initial public offering (IPO) taking place today. All of that info is ready to go at the links below!
More Stock Market News for Thursday
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
