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Alright, let’s dissect the current situation with Li Auto, the Chinese electric vehicle manufacturer:
**The News:** Li Auto’s shares are declining due to a less-than-stellar sales prediction for the initial quarter.
**Reasons for the Decline:**
* Li Auto anticipates generating revenue between 23.4 billion and 24.7 billion yuan. While this seems substantial, it signifies a potential decrease of up to 8.7% compared to the previous year.
* For perspective, market watchers had anticipated figures closer to 33.5 billion yuan. Hence, a notable shortfall.
**The Wider View:**
* The electric vehicle arena in China is fiercely competitive. Li Auto is vying for patronage against domestic competitors such as NIO, BYD, and Xpeng, along with the international behemoth, Tesla.
* A pricing conflict is underway, compressing profit margins for all participants.
* Even Tesla is experiencing strain and is reportedly contemplating more affordable iterations of its Model Y, tailored specifically for the Chinese market.
Toncoin (TON) Value Forecast for March 26th
**Li Auto’s General Performance:**
* In the most recent quarter, they earned roughly 10.04 yuan per share (adjusted), a decrease from the prior year.
* Their total revenue saw a slight increase (6.1%) to 44.3 billion yuan in the fourth quarter.
* However, over the preceding year, Li Auto’s stock has diminished by over 25% in value.
