XPEV, LI Stocks Slip Premarket: What's Dragging These Chinese EV Firms Lower?

• XPeng said its first mass-produced robotaxi rolled off the production line in Guangzhou.
• XPeng plans pilot robotaxi operations later this year and expects fully autonomous daily operations without safety drivers by early 2027.
• Meanwhile, Li Auto shares remained under pressure after the launch of its flagship L9 Livis SUV.

U.S.-listed shares of XPeng and Li Auto tumbled in premarket trading on Tuesday as investors digested intensifying competition in China’s premium EV market, aggressive new vehicle launches and growing pressure on pricing and margins across the sector.

XPEV stock dipped 0.3% in premarket trading on Tuesday, while LI shares slid 4%. 

XPeng Mass-Produces First Robotaxi

XPeng on Monday said that its first mass-produced robotaxi officially rolled off the production line in Guangzhou, making it the first automaker in China to mass-produce a robotaxi vehicle engineered to Level 4 autonomous-driving standards.

The new model is built on XPeng’s GX platform and uses four of the company’s in-house Turing AI chips, delivering up to 3,000 TOPS of computing power for autonomous driving workloads. Unlike many rivals, the robotaxi platform abandons LiDAR and high-definition maps in favor of a pure-vision autonomous-driving system, similar to Tesla's strategy.

XPeng said the system runs on its VLA 2.0 end-to-end large AI model, reducing decision-making latency to under 80 milliseconds while improving the vehicle’s ability to adapt across different urban environments. The company plans to begin pilot robotaxi operations in the second half of this year and expects fully autonomous daily operations without onboard safety officers by early 2027.

XPeng also established a dedicated robotaxi business unit earlier this year to accelerate the commercialization of the technology.

XPeng’s First Overseas Plant

The robotaxi launch comes as XPeng expands its global manufacturing footprint by acquiring a controlling stake in an Indonesian manufacturing entity under Erajaya Group as part of its Southeast Asia localization strategy.

Indonesia became XPeng’s first overseas production base, with the automaker previously launching local production of the X9 MPV through a CKD assembly model. XPeng has also expanded manufacturing partnerships in Malaysia and Europe, including production arrangements with Austria-based Magna Steyr.

However, investor enthusiasm around XPeng’s AI and robotaxi ambitions was overshadowed Monday by broader concerns surrounding competition, capital spending and slowing profitability across China’s EV sector. The company is simultaneously preparing a major product push in Europe, where it plans to launch four additional models this year, including the Mona series and flagship GX SUV.

LI Shares Sink After L9 Livis Launch

Meanwhile, Li Auto shares came under heavy pressure after the company launched its flagship Li L9 Livis SUV on Friday. Hong Kong-listed Li Auto shares plunged more than 14% on Monday, while U.S.-listed shares slid toward a fresh three-month low.

The Livis flagship trim starts at 509,800 yuan (74,967 ), though launch-period discounts reduce effective pricing for buyers. The SUV incorporates Li Auto’s third-gen extended-range electric system, offering a pure electric range of 420 kilometers and a combined driving range of 1,650 kilometers. Higher trims add advanced tech including an 800-volt active suspension system, brake-by-wire functionality, Snapdragon 8797 Elite cockpit chips and dual autonomous-driving chips delivering 2,560 TOPS of processing power.

China’s Premium EV Battle Intensifies

Investors appeared increasingly focused on how aggressively crowded China’s premium SUV market has become. The new Li L9 Livis now directly competes against vehicles including the Nio ES9, XPeng GX, Aito M9 and Denza N9.

Automakers across China’s EV industry have accelerated product launches, software upgrades and autonomous-driving rollouts, while simultaneously cutting prices to defend market share. The competition has increasingly pressured margins and investor sentiment even as vehicle tech continues advancing rapidly.

How Do Retail Traders Feel About LI And XPEV?

On Stocktwits, retail sentiment for LI and XPEV was ‘bullish’ amid ‘high’ message volume.

One user said, “$XPEV Stock is in a bad moment yet company is firing on all cylinders... This year is breakthrough year.”

Another user said, “$LI because it cant compete, just launched new model and its way overpriced.”

While U.S.-listed shares of Li Auto stock fell 42% over the past year, XPeng’s U.S.-listed stock declined 27%. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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