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Investor Alert

Sept. 20, 2021, 6:03 a.m. EDT

Li Auto's stock drops after cutting deliveries outlook, citing chip supply issues

Shares of Li Auto Inc. (NAS:LI) dropped 3.8% in premarket trading Monday, after the China-based electric vehicle maker cut its outlook for third-quarter deliveries, citing the slower-than-expected recovery in the supply of semiconductors. The company now expects third-quarter deliveries of about 24,500 vehicles, down from previous guidance of 25,000 to 26,000 vehicles. "Due to the COVID-19 pandemic in Malaysia, the production of chips dedicated for the Company's millimeter-wave radar supplier has been severely hampered," the company said in a statement. "The Company will continue to monitor the ongoing market conditions and closely work with its supply chain partners to minimize the impact of the chip shortage on its production." The stock has lost 3.4% over the past three months through Friday, while the iShares MSCI China ETF (NAS:MCHI) has slumped 14.2% and the S&P 500 (S&P:SPX) has gained 6.4%.

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