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LOS ANGELES, July 2, 2024 (GLOBE NEWSWIRE) — Portnoy Law Firm advises investors of Li Auto Inc. (“Li Auto” or the “Company”) (Nasdaq: LI) that a shareholder has filed a class action lawsuit on behalf of persons and entities who purchased or otherwise acquired Li Auto securities between February 26, 2024 and March 20, 2024.
Li Auto operates in the energy vehicle market in the People’s Republic of China and designs, develops, manufactures and sells intelligent electric vehicles.
Li Auto investors who have lost money on their investment are encouraged to contact Lesley Portnoy, Esq.
Investors are encouraged to contact Attorney Lesley F. Portnoy by phone at 310-682-9993 or by email at [email protected] to discuss their legal claims, or click here to join the case at www.portnoylaw.com. The Portnoy Law Firm can provide a free case evaluation and discuss investors’ options for pursuing claims to recover their losses.
The complaint alleges that throughout the Class Period, Li Auto failed to disclose to investors that (i) Li Auto had overstated demand for its vehicles and the effectiveness of its operating strategy in launching the Li MEGA, (ii) the Company was accordingly unlikely to achieve its estimate for vehicle deliveries in the first quarter of 2024, and (iii) the foregoing circumstances, once they came to light, would likely have a material adverse effect on the Company’s financial condition.
The lawsuit alleges that on March 31, 2024, Li Auto issued a press release announcing, “Due to lower than expected order intake, the company now expects its vehicle deliveries for the first quarter of 2024 to be between 76,000 and 78,000 vehicles, up from the previous forecast of 100,000 to 103,000 vehicles.” In addition, the company stated that the Li MEGA’s operating strategy was “mistimed,” noting that operations were planned as if the model had already entered the “scaling phase” of sales – the phase that primarily focuses on customer acquisition, team building, and operational efficiency for sustainable growth – while it was still in the early “validation phase,” during which the company would focus on creating a market-ready product through idea validation and product refinement. In addition, the company stated that it will return to the validation phase of sales by shifting its focus to its core user group, targeting sales to cities with higher purchasing power, and then aiming to expand to a broader user base.
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The Portnoy Law Firm represents investors in claims arising from corporate malpractice. The firm’s founding partner has recovered more than $5.5 billion for injured investors. Attorney Advertising. Past results do not guarantee similar results.
Lesley F. Portnoy, Esq.
Admitted to the bar in California and New York
[email protected]
310-692-8883
www.portnoylaw.com
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