Li Auto announced it is again slashing its vehicle prices in Chinese markets, sending its shares lower in early trade on Monday.
The Chinese automaker, known for its “extended range” electric vehicles, said it is reducing its prices by between 18,000 and 30,000 yuan (US$2,485 to US$4,142) on its L7, Li L8, Li L9, and Li MEGA models.
Additionally, it said it would issue cash refunds to customers who purchased these models earlier this year.
Shares of Li Auto plunged by 6.1% to about US$25 on the news.
Amid rising competition, EV makers in the Chinese market continue to price their vehicles aggressively to win customers, with Geely Auto, GAC Aion, Leapmotor and Xpeng this year announcing price cuts.
Tesla Inc (NASDAQ:TSLA) over the weekend also announced another round of EV price cuts across major markets including China, sending its shares 2.1% lower to about US$144.
In China, the starting price for the revamped Model 3 was cut by 5.3% to 231,900 yuan (approximately US$32,000).