Li Auto Challenges Tesla’s Dominance in EV Market with Range Test Video
Li Auto (NASDAQ: LI) has responded to Tesla’s dismissive remarks about its technology by demonstrating the capabilities of its Li Mega against Tesla’s Model X in a range test video. This move by the Chinese automaker effectively challenges Tesla’s dominance in the electric vehicle (EV) market.
Tesla had previously mocked Li Auto, suggesting that the company lacked substantial technology and relied on superficial comfort features to attract customers. In response, Li Auto released a video on Weibo showcasing a range test between its soon-to-be-launched Li Mega MPV and Tesla’s Model X SUV.
The test, conducted in Hainan, China, involved four automobile bloggers, including two Tesla owners. Both vehicles were dual-motor all-wheel-drive models, and the test covered a planned distance of 616 kilometers.
The Li Mega outperformed the Model X by finishing the test with 14% battery remaining, indicating a real-world range of 636 kilometers. In contrast, the Model X ended with a 4% charge, implying a real-world range of 570 kilometers. Additionally, the Li Mega surpassed the Model X in charging speed.
This retaliation from Li Auto comes after Tesla released a short video mocking decorative features in some cars. Although not directly named, Li Auto, known for offering amenities like a refrigerator, sofa, and TV in its vehicles, was the implied target.
The rivalry between Tesla and Li Auto intensifies as top Chinese auto manufacturers strive to stimulate the growth of the new energy vehicle (NEV) industry and expand into international markets. Despite economic challenges, China witnessed an increase in auto sales in 2023, with NEV retail sales accounting for 35.7% of all passenger vehicle sales.
Goldman Sachs recently expressed a bullish stance on Li Auto, predicting a significant 50% surge in its stock value based on monthly deliveries and the imminent launch of a new model.
As the competition in the EV market heats up, it will be interesting to see how Li Auto’s challenge to Tesla’s dominance plays out. Both companies are vying for a larger share of the growing NEV industry, and their rivalry could drive further innovation and improvements in electric vehicle technology.
Disclaimer: The GPT-4-based Benzinga Neuro content generation system creates comprehensive and timely stories using the extensive Benzinga Ecosystem, including native data, APIs, and more. The article has been edited by Ramakrishnan M.
