Hong Kong, May 18, 2026, 16:02 (HKT)
Li Auto Inc. shares in Hong Kong slumped about 14% Monday, with the stock around HK$65 late in the session. The drop followed a cool market reaction to the company’s refreshed L9 flagship SUV.
The stock last traded at HK$64.95, off from its previous close at HK$75.60, after hitting a session low of HK$64.50, according to Investing.com data.
The drop is significant since the L9 isn’t a routine trim update. This is Li Auto’s premium SUV, aimed at families, and it’s a gauge of how well the company holds its top-tier position ahead of first-quarter earnings and as China’s EV sector faces new pressure.
Li Auto has launched its new L9, the company said on May 15. Deliveries are expected to start May 17. The L9, an extended-range EV, comes in Ultra and Livis trims, priced at 459,800 yuan and 509,800 yuan. The vehicle uses electric motors for driving but can use a gasoline engine as a generator for more range.
Li Auto Chairman and CEO Li Xiang called the new model a technology-driven step up. “The previous L9 succeeded by precisely defining its product; the All-New Li L9 will build its moat through technology,” Li said. He also said Asia and Europe are next for expansion as Li Auto moves abroad. The EV Report
Citi and Morgan Stanley are at odds over the new L9 model. Citi said the L9’s value-for-money matches rivals, stuck with a Neutral, and held its HK$72.70 target price. Morgan Stanley kept an Overweight, sees monthly sales beating the L9’s average last year, with a HK$83 target.
Morgan Stanley flagged tough competition in the six-seat SUV market, listing NIO, XPeng and Aito’s M9 as main rivals. That’s why Li Auto fell Monday—its push to pitch a premium tech story faces rivals all aiming at the same family SUV buyers.
The wider China EV sector has been no help. Manishi Raychaudhuri, who runs Emmer Capital Partners and used to head Asia-Pacific equity research at BNP Paribas Securities, said in a Reuters Open Interest piece that China’s EV price war continues to turn out “involution losers,” meaning companies hurt by too much competition and low demand. Reuters
Hong Kong stocks fell too. Most Asian markets were down and oil prices moved higher, with the Hang Seng Index off 1.6%, AP said.
Li Auto’s latest delivery numbers leave some doubts about growth. April deliveries came in at 34,085 vehicles, pushing total deliveries to 1.67 million. By the end of April, the company reported 511 retail stores and 4,077 supercharging stations across China.
Li Auto is set to report its first-quarter results on May 28 before the U.S. open. The company will hold its call at 8 a.m. Eastern, which is 8 p.m. in Beijing and Hong Kong.
The risk cuts both ways. If initial L9 orders top broker forecasts or if management can show margins are holding, Monday’s drop might have gone too far. If the launch drives more price cuts, the risk is Li Auto has to spend more to move fewer high-margin vehicles as rivals leave little room to miss.
