Li Auto's Faster Product Launches May Weaken Quality Control -- Market Talk

Dow Jones
11/25

0101 GMT - Li Auto's plan for faster product launches worries UOB Kay Hian as it reckons shorter product development could further weaken quality control. Li Auto is undertaking a strategic reset amid slowing sales by planning faster product launches and renewing its overseas push, say analysts Ken Lee and Bella Lu in a note. "The company is desperate to revive growth momentum, given the sales decline and stock drop despite the launches of new models," they say. The company recently recalled more than 100,000 Mega MPVs due to an issue with the coolant's corrosion resistance. "That is exactly what the authorities do not want to see, as they have just tightened scrutiny on product quality and safety," they say. UOB KH keeps a sell rating and HK$60.00 target price on the stock. (monica.gupta@wsj.com)

 

(END) Dow Jones Newswires

November 24, 2025 20:01 ET (01:01 GMT)

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