Li Auto’s stock dropped 15.9% on August 28, 2024, primarily due to declining vehicle prices and fierce market competition, despite reporting a profitable second quarter with earnings of $0.10 per share and revenue of $4.4 billion. The company experienced decreased vehicle margins, compounding challenges in the competitive EV sector. The launch of its new electric model, the Li Mega, did not meet sales expectations, further impacting stock performance. While Li Auto remains profitable and expects increased vehicle deliveries and revenue in the third quarter, investor sentiment is cautious amid market uncertainties, leading analysts to exclude it from top stock recommendations.