American depositary receipts (ADRs) of Li Auto (LI) are down 14% in intraday trading Monday after the Chinese electric vehicle (EV) manufacturer posted a 36% year-over-year drop in first-quarter net income as it lowered car prices.

The company said its profit attributable to shareholders was 592.6 million yuan ($82.0 million), versus CNY929.7 million in the same period last year, and well below analysts’ forecasts of CNY1.63 billion.

Revenu🐎e was up, however, by 36% at CNY25.63 billion, including a 32% jump in vehicle sales to CNY24.3 billion.

“The increase in revenue from vehicle sales over the first quarter of 2023 was mainly attributable to the increase in vehicle deliveries, partially offset by the lower average selling price due to different product mix and pricing strategy c✃hanges between two quarters,” Li Auto said.

Intense EV Market Competition

澳洲幸运5开奖号码历史查询:Competition is intense in the EV market. Zeekr Intelligent Technology Holding (ZK) 澳洲幸运5开奖号码历史查询:recently debuted on the 澳洲幸运5开奖号码历史查询:New York Stock Exchange (NYSE), in the largest U.S. IPO from a Chinese company since ridesharing platform Didi in 2021. Earlier this month, Tesla (TSLA) launched 澳洲幸运5开奖号码历史查询:a financing ꦚinitiative for its Model Y after 18 months of select price reductions across its vehicle lineup. And Japanese car makers, which had previously focused on hybrid vehicles, are joining the fray as well, with Honda Motor (HMC) last week announcing plans to 澳洲幸运5开奖号码历史查询:invest nearly $65 billion in its EV stওrategy over a 10-year period through its 2031 fiscal yܫear.

Li Auto ADRs were down🌌 almost 14% to $21.42 as of 10 a.m. ET Monday.