On July 8, Leapmotor declined 3.04% in regular trading, trading at HKD 37.02/share, with turnover of HKD 79.77 million. The stock extended its second consecutive day of retreat after surging over 7% on July 6 on news of its North American market entry and record June deliveries.

The pullback reflects mounting investor concerns over execution risks and profitability. The company delivered approximately 356,000 vehicles in the first half, completing only 35.6% of its full-year 1 million unit target, requiring average monthly deliveries exceeding 107,000 units in the second half — a significant ramp-up challenge. Meanwhile, Q1 gross margin plunged from 14.5% to 9.4% with a net loss of RMB 390 million, raising questions about earnings sustainability. The CSRC previously issued an inquiry letter regarding the company's RMB 6.74 billion private placement plan, questioning profitability volatility, revenue recognition practices, and controlling shareholder dilution risks. These multiple overhangs continue to weigh on near-term valuation despite supportive factors including a Goldman Sachs buy rating with a HKD 50 target and core shareholder purchases totaling approximately HKD 900 million over six months.

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