The Chinese electric vehicle maker
Investors gave unexpected positive news, sending their stock higher.
On Thursday morning, Li (ticker: LI) announced the “early launch” of its six-seat SUV, the Li L8. The price of the family vehicle will be below 400,000 yuan, or about $57,000. The launch is just days away; delivery is slated to begin in early November.
“We decided to move forward our launch date for Li L8 based on the overwhelming market response in anticipation of its release,” Li President Yanan Shen said in a news release.
Li’s stock was 6.3% higher in early trading Thursday. Futures on the
Dow Jones industrial average
the two were hovering around each other.
Beyond the price, there aren’t many details about the car. Those will come at the launch event, which will begin at 3 am Eastern on September 30. the release.
Some of the lineup plans are already known. Along with the L8, Li has an L9 SUV that debuted earlier in 2022. That model will run around $70,000 for car buyers. A five-seat L7 model is planned for early 2023, and eventually the company will offer a five-seat L6 model priced below $43,000.
All Li vehicles come with gasoline-powered generators that can recharge batteries while the car is driving, if needed. The vehicles are still electric, however. They can be plugged in, and the wheels are driven by electric motors that draw power from batteries, just like any other EV. The generator system is just a way to eliminate worries about the vehicles running out of juice.
Through August, Li delivered 75,396 vehicles, up about 57% compared to the same period of 2021. Most of those deliveries were Li’s first model, the Li ONE.
Coming into Thursday’s trading, Li’s stock is down about 28% so far this year. Shares of
(XPEV), Li’s Chinese peers, have fallen 42% and 72% so far in 2022, respectively.
All three shares of Chinese EV makers have been struggling as tensions between the US and China have risen in recent months. The stocks have also had to deal with rising interest rates, which tend to reduce valuations of expensive high-growth stocks – for example.
and Li – more than others. Combined sales of the three are forecast to rise by around 68% from 2021, and none of them are consistently profitable at this point.
Write to Al Root at firstname.lastname@example.org