Li Auto (NASDAQ:LI) stock is falling on Monday after the electric vehicle (EV) company announced plans to reduce the price of its products amid stiff competition in the EV space.

Li Auto is reducing the price on four of its five models in a bid to better compete with rival EV companies. It’s also offering refunds for customers who bought those models earlier this year at their higher prices.

The price cuts have Li Auto dropping the purchase sticker for its L7, Li L8, Li L9 and Li MEGA models. This has it reducing the prices on these by 5%, which has the cuts ranging from $2,485 to $4,142.

LI Stock: Li Auto Launches New EV

Li Auto also released a new EV last week before announcing these price cuts. This is its Li L6. The five-seat premium family SUV isn’t included in the latest round of price cuts announced by the EV maker.

News of the price cuts are weighing on LI stock today. That has shares down 5.8% as of Monday morning. Alongside this is some 6 million shares of the stock changing hands. That’s still below its daily average trading volume of about 8 million shares but is closing in fast.

Investors who want even more of the most recent stock market stories will want to keep reading!

We have all of the hottest stock market news ready to go on Monday! That includes everything happening with Adient (NYSE:ADNT) layoffs, Nike (NYSE:NKE) layoffs and Salesforce (NYSE:CRM) stock this morning. All of that news is available at the following links!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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