Skip to main content

Market Overview

Li Auto's Rally At Risk As Chinese EV Maker Recalls 10K Vehicles

Li Auto's Rally At Risk As Chinese EV Maker Recalls 10K Vehicles

Li Auto Inc. (NASDAQ: LI) announced Friday it is recalling some of its Li ONE vehicle models, and the Chinese electric vehicle manufacturer's stock was retreating in reaction. 

What Happened: Li Auto said that beginning Saturday it will start to replace free of charge the control arm ball joint in the front suspension on 10,469 Li ONEs produced on or before June 1.

The recall is in accordance with the requirements by China's State Administration for Market Regulation, the company said. 

Li ONEs produced after June 1 are already equipped with an upgraded version of the control arm ball joint of the front suspension, Li said. 

Related Link: Tesla Vs. Nio Vs. Li Auto: How Q3 Deliveries From Electric Automakers Stack Up

Li One said the replacement plan is the same as the vehicle upgrade plan it proactively initiated and announced Nov. 1.

The replacement will be completed within three months, the company said. 

"As a user-driven automotive and technology enterprise, Li Auto always puts its users as its highest priority, and will continue sparing no efforts to provide its users with safer, more convenient and more value-added products and services," Li Auto said.

Why It's Important: The Li ONE, a crossover SUV, is the company's only vehicle model and was made commercially available in November 2019.

In late October, the company said it completed deliveries of 20,000 Li ONEs.

Shares of Li Auto, which were listed on the Nasdaq in late July, began showing strong upward momentum this week. The recall news has served as a dampener.

LI Price Action: At last check, Li One shares were trading down 7.9% at $25.87.

Courtesy photo. 


Related Articles (LI)

View Comments and Join the Discussion!

Posted-In: China electric vehicles EVsNews Global Movers Tech Trading Ideas Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at