Li Auto shares in Hong Kong plummeted 13% following the launch of its updated Li L9 flagship SUV, as investors appeared unconvinced by the new model aimed at reviving sales momentum. The automaker officially rolled out the updated Li L9 on May 15, adding a higher-end Livis version with a starting price of 509,800 yuan ($74,862). The final pricing for the Li L9 Livis is 50,000 yuan lower than its pre-sales price.
The upgraded Ultra version starts at 459,800 yuan, providing customers with more options. However, some analysts, like Citi, noted that the updated L9 is not a game changer, believing its actual value-for-money merely aligns with that of its peers.
Citi expects monthly sales of 1,000 units for the Li L9 Livis and 4,000 units for the Ultra version. The bank maintained its 'Neutral' rating on the company, citing concerns about market competition.
Morgan Stanley held a more positive view on the model, believing it is crucial for Li Auto to regain sales momentum. The bank expects monthly sales of the new Li L9 to surpass last year's average.
The Li L9 Livis features two smart driving chips developed in-house by Li Auto, providing the vehicle with powerful computing capabilities for complex road conditions. This technology enables the vehicle to handle challenging terrain and weather conditions.
The new vehicle also boasts a 72.7 kWh battery pack and a third-generation range extender, offering a combined range of up to 1,650 kilometers on a full charge and a full tank.
Li Auto plans to launch an international version of the Li L9 in the third quarter of 2026, with the first batch landing in overseas markets including Central Asia and the Middle East.
The Li L9 was initially launched in 2022 and was once one of the most expensive models from a domestic automaker. The company's sales have slumped by nearly half year-on-year last year due to increased competition from rival products.
Investors may be cautious about the new model's pricing and value proposition.
