Li Auto stock drops after cutting delivery outlook, as supply chain issues outweigh ‘robust’ demand

Share of Li Auto Inc.
LI,
+3.18%
dropped 1.7% in premarket trading Monday, after the China-based electric vehicle maker cut its delivery outlook for the third quarter, citing supply chain challenges. The company now expects to deliver about 25,500 EVs during the quarter, down from previous guidance of between 27,000 and 29,000. “The revision is a direct consequence of the supply chain constraint, while the underlying demand for the Company’s vehicles remains robust,” the company said in a statement. “The Company will continue to closely collaborate with its supply chain partners to resolve the bottleneck and accelerate production.” The stock has tumbled 38.7% over the past three months through Friday, while shares of rival China-based EV maker NIO Inc.
NIO,
-3.87%
have slumped 26.7%, the iShares China Large-Cap ETF
FXI,
-1.33%
has shed 21.4% and the S&P 500
SPX,
-1.72%
has declined 5.6%.