Li Auto (NASDAQ:LI) is making headlines today, with the company announcing the launch of its brand-new L6 SUV. This premium SUV will start at a price of $34,500, clearly exciting many in the market. LI stock closed the day up by nearly 2%.

An extended-range model will be made available at this price point, in a bid for the company to gain market share. The electric vehicle (EV) firm will also offer upgraded models at a slightly higher price point.

This is the latest move for a Chinese EV maker to put forward new models that effectively result in price cuts for the broader sector. Here’s what investors may want to know about the new Li L6 SUV.

LI Stock Surges on Launch of New SUV

One of the key stumbling blocks for Tesla (NASDAQ:TSLA) in recent weeks has been reports that the company may be shelving its so-called Model 2. The lower-priced sedan was aimed at reaching a much broader market. And with prices coming down for new EV models from various automakers (such as Li), it’s clear that the race is on to provide quality at a better price.

Electric vehicles are becoming widely adopted. But in order for these cars to truly reach the masses, products like the L6 SUV will need to be brought to markets like the United States.

Unfortunately, due to tariffs in the U.S. and other markets right now, Li’s SUVs will likely mainly be sold across Asia. That said, with China as the world’s largest and fastest-growing EV market, that’s not a bad thing. For that reason, this is a company I’ve been bullish on for some time.

If anything, this product launch provides me with greater enthusiasm about LI stock moving forward. The market appears to agree today.

On the date of publication, Chris MacDonald 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.