2024-04-22 09:06:59 ET
Li Auto Inc (NASDAQ: LI) is down nearly 8.0% this morning after Pomerantz LLP announced an investigation into the electric vehicles company.
Why is Li Auto under investigation?
The law firm is looking into concerns that the EV firm or its employees may have engaged in “securities fraud or other unlawful business practices”.
It is “investigating claims on behalf of Li Auto” investors, as per the press release on Monday.
The news arrives about a month after Li Auto lowered its forecast for Q1 deliveries from up to 103,000 vehicles to up to 78,000 vehicles only. It is scheduled to report its first-quarter earnings on May 8th.
Note that Li Auto stock has now been cut nearly in half since the final week of February.
Why else is Li Auto stock down on Monday?
Li Auto is in the red at writing also because it lowered the price of its vehicles by up to ¥30,000 on Monday.
Models including the L7, L8, L9, and the recently rolled out Mega SUV are now listed on its website at updated prices.
$LI may have decided in favour of trimming prices to boost demand in its bid to “take the crown from Tesla”, as per the head of China equity strategy at Macquarie Group – Eugene Hsiao.
It’s worth mentioning, however, that the electric vehicles behemoth based out of Austin, Texas also reduced the price of its Model 3 by a whopping ¥14,000 in China on Monday.
It, in fact, cut prices in other markets as well, including Germany. $TSLA is currently down close to 50% versus the start of this year.
The post Li Auto is being investigated on claims of 'securities fraud' appeared first on Invezz
