By Jiahui Huang


Li Auto shares carried overnight gains in the U.S. over into the Hong Kong session on Wednesday, as investors cheered the Chinese EV maker's rebounding sales and fresh price cuts.

Shares of Li Auto were 4.15% higher at 153.10 Hong Kong dollars (US$19.57) by midday on Wednesday, outpacing a 0.3% rise in the Hang Seng Index. Its Nasdaq-listed shares closed 8.9% higher overnight.

The gains come after Li Auto said its EV sales in China surpassed those of Huawei-backed automaker Seres during the March 4-10 period, according to a weekly ranking posted on its account on social media platform Weibo. The ranking, which is often calculated based on weekly insurance sales, is widely used by industry insiders as well as other carmakers.

According to the ranking, Li Auto sold 9,300 units during the week, behind only BYD and Tesla. Seres, its rival in the hybrid SUV market, sold 8,500 units, ending two consecutive months of outselling Li Auto.

Li Auto's stock could be getting a lift from news that it is lowering prices on some of its flagship plug-in hybrid SUV models, Bernstein analyst Eunice Lee told Dow Jones Newswires. The company said on its WeChat account late Tuesday that it is trimming prices on five L-series models.

This comes as many EV makers are locked in a price battle in China, looking to woo consumers as demand softens in the world's largest auto market.

Part of the reason for Wednesday's rally could also be bargain-hunting in the wake of a recent selloff, CCB International analyst Ke Qu said. Li Auto's shares took a hit after it released its first fully electric car, the Mega, on March 1 to some disappointment. The car's price tag was slightly higher than analysts had expected.

Deliveries of the upgraded versions of the company's flagship L7, L8 and L9 plug-in hybrid vehicles, which are due to start soon, could also be buoying investor sentiment toward the stock, Qu said.

Li Auto's Hong Kong-listed shares are down 14% so far this month, but still up 74% over the past 12 months.


Write to Jiahui Huang at jiahui.huang@wsj.com


(END) Dow Jones Newswires

03-13-24 0118ET