Li Auto recently disclosed its operating results for 2023, with revenue exceeding the $100 billion mark, firmly occupying the third place in the new energy vehicle market, second only to Tesla and BYD.
On the day of this impressive financial report, Li Auto's stock price experienced a 20% jump, and its market valuation jumped to more than $300 billion, quickly approaching the market value of NIO and XPeng. However, this growth did not last long, and its market value began to decline as the company launched its new model, the Ideal Mega series.
Last week, Li Auto unveiled its mega series of models, which founder Li Xiang is very optimistic about, which is seen as another innovation highlight of the company. However, the market performance of the new model was not as expected. According to the released data, although Ideal Mega has received 3,218 orders since its listing three days ago, 10,297 orders have been cancelled. The reason for this phenomenon is not difficult to understand, because large orders need to be purchased with actual payment, and the reservation order only needs to pay a deposit of 5,000 yuan, and if the final ** is not satisfactory, you can choose to cancel the subscription.
The number of canceled orders far exceeded the number of new orders and fell far short of the sales expected by Li Auto and its investors. As a result, Li Auto's share price suffered a heavy setback. Public information shows that on March 4, the share price of Li Auto in the Hong Kong stock market fell by 1289%, and the market value has evaporated by nearly 40 billion Hong Kong dollars.
Since March 5, Li Auto's share price has continued to decline, and has now accumulated **5%, and its market value has shrunk to about HK$15 billion. The stock price for two consecutive days** has caused the market value of Li Auto to shrink by 55 billion Hong Kong dollars, which is converted to about 56 billion yuan!
The sharp decline in the market value of Li Auto has its internal and external reasons. First of all, the high pricing of the MEGA series models is a big failure. Li Auto is positioned in the high-end market, and its vehicles are generally priced in the range of 300,000-400,000 yuan, with an average selling price of about 340,000 yuan, which is already in the category of luxury cars. Although Li Auto believes that there is room for price reduction as sales increase, it is 59The launch of the MEGA series at 90,000 is obviously too optimistic.
Despite its many advantages, such as the world's fastest charging speed, a range of 500 kilometers in 12 minutes, a spacious interior for seven people, and many improvements in family use, the price tag of 600,000 yuan is still prohibitive. The model's appearance and high profile were widely criticized by the public, with many believing that its profile was not attractive enough and was too high.
The market positioning of Wenjie Auto is similar to that of Li Auto, with a ** range of 25-300,000 yuan, and the competition with Ideal is becoming more and more fierce. With Huawei's technical support, the performance of Wenjie Auto has become stronger and stronger, which has put Li Auto under tremendous pressure in this competition. This competition not only tests the market positioning strategy of Li Auto, but also tests the core competitiveness of its products.
Although Li Auto has its unique positioning in the high-end market, and the technological innovation and family-friendly design of its MEGA series models deserve to be recognized by the market, the high price of ** and the restrictions on the acceptance of its new models have become stumbling blocks to its development. Li Auto's plight reflects the increasingly fierce competitive environment of the new energy vehicle market and the increasing sensitivity of consumers to the new energy vehicle market.
In the face of such a market environment, Li Auto and other new energy vehicle manufacturers need to re-examine their market strategies. First, Li Auto may need to consider adjusting its product pricing strategy to appeal to a wider consumer base, especially if competitors such as Wenjie Auto offer more cost-effective products. Second, Li Auto needs to strengthen the promotion of its product features and technical advantages in order to better communicate the value proposition of its products, especially in terms of range, charging speed and interior space.
At the same time, Li Auto also needs to pay close attention to market dynamics and changes in consumer demand in order to adjust its product development and marketing strategies in a timely manner. The rapid development of the new energy vehicle market requires manufacturers not only to make breakthroughs in technological innovation, but also to continuously optimize marketing and customer service to establish and maintain long-term relationships with consumers.
Eventually, competition from Li Auto and other NEV brands will push the entire industry to make continuous progress and provide consumers with more high-performance and cost-effective options. Despite the challenges faced by Li Auto in the short term, through strategic adjustment and continuous innovation, Li Auto is expected to overcome the current difficulties and continue to occupy an important position in the new energy vehicle market.