Chinese electric car makers saw their stock prices drop significantly after Tesla and Li Auto announced new price cuts for their vehicles in China.
Thus, Li Auto, a Chinese company specializing in hybrid cars, announced price cuts for all its models, including the L7, L8, L9 series and the new all-electric Mega model, Kommersant reported. In some cases, the price cuts amounted to up to 30,000 yuan ($4,100), which caused a negative reaction in the market.
At the same time, Tesla also announced price cuts for its electric cars due to increasing competition in the Chinese market. The company reduced the prices of Model 3, Y, S and X by 14 thousand yuan.
The price cuts lead to lower operating margins, which affected Li Auto's stock price, which fell 9%. Shares of Great Wall Motor and Leapmotor also fell by 6.7% and 4.9%, respectively.
Recall that earlier Tesla owners accused the electric car 's autopilot of ramming curbs, as well as Russian dealers will trade cars among themselves.