Shares of Li Auto dropped 13.6% to $25.01 yesterday after the company reported better-than-expected third-quarter earnings, primarily due to weaker guidance. Despite reporting earnings per share of 26 cents from $6.1 billion in sales – exceeding Wall Street expectations of 19 cents and $5.9 billion – Li’s outlook for the fourth quarter, predicting deliveries of 160,000 to 170,000 vehicles and sales between $6.2 billion and $6.5 billion, fell short of analysts’ forecasts. This guidance reflects ongoing pricing pressures and intensified competition in the Chinese electric vehicle market, where unit sales have outpaced revenue growth, impacting profit margins. The stock decline also influenced other EV manufacturers, with Nio, XPeng, and Tesla experiencing declines in their shares.