Bearish bets against Li Auto Inc. surged to a record high. Short positions in its Hong Kong-listed shares climbed to 9.6% of the free float.
Li Auto is now the most heavily shorted Chinese automaker since September of the previous year. Declining sales and fierce competition in the premium EV market fuel this trend. The company's stock fell approximately 25% over the past year.
Internal challenges include reports of production slowdowns at the Changzhou factory. This follows a 19% sales decline in 2025.
Li Auto is adjusting its strategy to refocus on core extended-range vehicle models. The company is also considering closing underperforming retail stores to improve efficiency.