Li Auto’s stock fell sharply on August 28, 2024, due to decreasing vehicle prices amid intense market competition. In their earnings report, CEO Xiang Li and CFO Tie Li noted the competitive landscape, which has led to reduced vehicle margins, despite the company remaining profitable. The second-quarter vehicle revenue rose modestly by 8.4% year-over-year, falling short of investor expectations. Although the earnings per share (EPS) of $0.10 surpassed forecasts, total revenue of approximately $4.4 billion met estimates. The disappointing launch of the fully electric Li Mega in March further impacted investor sentiment. Moving forward, Li Auto anticipates increased vehicle deliveries and revenue in the third quarter but faces cautious investor sentiment in a challenging market.