Tesla’s closest rival in China Li Auto reports a big drop in first-quarter earnings, margins in warning to EV market peers

Li Auto, Tesla’s closest competitor in China’s electric-car market, reported weaker than expected results for the first quarter as deliveries failed to match expectations and margins came under pressure amid a bruising price war.

The premium electric-vehicle (EV) maker said earnings fell 37 per cent to 591.1 million yuan (US$81.7 million) from a year earlier, according to a Hong Kong stock exchange filing on Monday. They declined 90 per cent from the final quarter of 2023.