Shares of Chinese EV maker Li Auto (NASDAQ:LI) are under pressure today as investor sentiment takes a hit amid stiffening competition. The Chinese EV market is fiercely competitive, with multiple existing EV manufacturers vying for customer attention. Now, networking equipment and smartphone maker Huawei is making major investments in the EV space as well.
At a recent product launch event, Huawei announced that it wants to produce an electric sedan and an electric SUV, according to CNBC. The company teamed up with car manufacturers to deliver vehicles under the Aito brand and introduced its first electric model, AITO M5, earlier this year.
While Huawei is making headway into the EV space, Nio (NYSE:NIO), a leading EV maker in China, is venturing into making smartphones. Last week, the company unveiled its first smartphone, designed to be used with its vehicles.
What Is the Forecast for LI Stock?
The heightened competition has already led to a 6.5% drop in LI Auto shares in the pre-market session today. Meanwhile, the Street has a consensus price target of $51.81 on LI, alongside a Strong Buy consensus rating.
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