Benzinga - by Benzinga Neuro, Benzinga Staff Writer.
Li Auto (NASDAQ:LI) has clapped back at Tesla Inc. (NASDAQ:TSLA) for the U.S. EV giant’s dismissive remarks about the Chinese automaker’s technology. The company demonstrated the prowess of its Li Mega against Tesla’s Model X in a range test video, effectively challenging the American brand’s dominance in the EV market.
What Happened: As reported by CnEVPost, Tesla had previously taken a jab at Li Auto, ridiculing it for allegedly lacking substantial technology and leaning on superficial comfort features to draw in customers. Li Auto responded by releasing a video on Weibo that showed a range test between its soon-to-be-launched Li Mega MPV and Tesla’s Model X SUV.
The test was performed by four automobile bloggers, including two Tesla owners, in Hainan, China’s southernmost province. Both the Li Mega and the Model X were dual-motor all-wheel-drive models, and the test covered a planned distance of 616 kilometers.
The Li Mega outdistanced the Tesla 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 percent charge, implying a real-world range of 570 kilometers. The Li Mega also outperformed the Model X in charging speed.
This retaliation from Li Auto comes after Tesla released a short video mocking the 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.
Why It Matters: The rivalry between Tesla and Li Auto escalates amid increasing efforts by top Chinese auto manufacturers to stimulate the growth of the NEV industry and foster expansion into international markets.
Despite economic challenges, China saw an increase in auto sales in 2023, with NEV retail sales making up 35.7% of all passenger vehicle sales.
Earlier this month, Goldman Sachs expressed its 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.
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