Shares of Chinese electric carmaker Li Auto Inc (NASDAQ:LI) are under pressure today, facing a near 10% drop in share price as investor confidence wavers in the face of mounting competition in the Chinese EV market. Networking equipment and smartphone titan Huawei has made significant investments in the EV sector and is preparing to launch the Luxeed S7 EV in November alongside state-owned Chery Automobile.
During a recent product launch event, Huawei unveiled its plans to delve into the EV market, teasing an electric sedan and an electric SUV, as reported by CNBC. In collaboration with car manufacturers, Huawei aims to deliver vehicles under the Aito brand, introducing its maiden electric model, the AITO M5, earlier this year.
While Huawei expands its presence in the EV sector, Nio (NYSE:NIO), a prominent player in the Chinese EV market, is charting a different course. Last week, Nio surprised the market by venturing into the smartphone industry, unveiling its inaugural smartphone designed to complement its EV offerings.
Shares of LI are down 9.46% in afternoon trading on Monday.