Consumers and investors are disappointed with Li Auto’s new model, say experts
Li Auto’s shares plunging over 11% Wednesday is a reflection that consumers and investors are disappointed with the new models, industry experts told CNBC.
“The market reaction reflects disappointment with the Li MEGA and now the Li L8 six-seat battery EV launches,” said Bill Russo, the founder and CEO of Automobility. Investors are questioning the company’s product strategy and timing, particularly as the pure battery electric segment is becoming highly competitive and price-sensitive, he added.
Consumers may also be disappointed that the low-end i8 variant does not have features typical of Li Auto cars like in-car refrigerator and large cinema display, said Eugene Hsiao, head of China equity strategy at Macquarie.
Hanyang Wang, an analyst at 86 Research, noted that Li Auto’s lack of disclosure of order volume following the launch of the i8 could have also raised investors’ concerns about insufficient demand for the model.
“We think the underwhelming order performance of the i8 will put sales pressure on Li Auto,” he told CNBC.
— Lee Ying Shan
Li Auto stocks plunge over 11% after debuting six-seat electric SUV
Stocks of Chinese electric vehicle manufacturer Li Auto fell over 11% after it launched a six-seat electric vehicle.
The Li i8 is available in three variants — Pro, Max, and Ultra — priced at RMB321,800 ($44,838) RMB349,800, and RMB369,800, respectively. Customer deliveries are set to begin on Aug. 20, 2025.
—Lee Ying Shan
Australia’s second-quarter inflation drops to lowest since March 2021, supporting case for rate cut
Australia’s headline inflation rate in the second quarter of the year slipped to its lowest point since March 2021, coming in at 2.1% year over year, compared to 2.4% in the preceding period.
This was lower than the 2.2% expected by economists polled by Reuters, and is almost touching the lower band of the 2%-3% target set by the Reserve Bank of Australia.
On a quarter-over-quarter basis, inflation slowed to 0.7%, compared to 0.8% expected in the Reuters poll and 0.9% in the first quarter.
The Australian Bureau of Statistics revealed that the most significant price rises in the quarter were seen in housing, food and non-alcoholic beverages and health, although a fall in transport costs partially offset the rise.
Read the full story here.
— Lim Hui Jie
U.S.-China trade talks end without extension of tariff truce, as Trump weighs options
A potential extension of a tariff pause between the United States and China will not be agreed to until President Donald Trump signs off on the plan, U.S. negotiators said Tuesday.
Trump “has final say on all the trade deals” and the pending tariff truce, Treasury Secretary Scott Bessent told CNBC’s Eamon Javers.
The remarks came after top trade officials for the two countries concluded talks in Stockholm, Sweden, their third round of high-level discussions since May.
“We’re going to head back to Washington, D.C. We’re going to talk to the president about whether that’s something that he wants so do,” U.S. Trade Representative Jamieson Greer told reporters following the talks.
Read the full story here.
— Kevin Breuninger
Singapore holds monetary policy, flags slowdown in second half of the year
Singapore’s central bank warned that the city-state’s economy is “projected to moderate in the second half of 2025 from its strong pace in [the first half],” as it kept its monetary policy unchanged.
The Monetary Authority of Singapore said it would hold the width and level at which its policy band is centered amid trade concerns from the Trump administration.
“In particular, the trade-related sectors should see some pullback,” the central bank said in its monetary policy statement on Wednesday.
“Prospects for the Singapore economy remain subject to significant uncertainty, especially in 2026. Changes in effective tariff rates worldwide could impact the performance of Singapore’s externally-oriented sectors,” MAS added.
Financial volatility and geopolitical shocks could deepen the impact of the global slowdown and add pressure on Singapore’s growth outlook, MAS said.
Read the full story here.
— Lim Hui Jie
Asia-Pacific markets open mixed as U.S.-China trade truce hangs in a limbo
Asia markets started the trading day mixed.
Japan’s benchmark Nikkei 225 was flat at the open, while the Topix inched higher 0.1%.
South Korea’s Kospi gained 0.48%, and the small-cap Kosdaq rose 0.42%.
Australia’s S&P/ASX 200 lost 0.19%.
— Lee Ying Shan
Opening calls
Happy mid-week from Singapore. Asia markets are poised for a lower open.
Futures for Hong Kong’s Hang Seng Index stood at 25,344, pointing to a weaker open compared with the HSI’s last close of 25,524.45
Similarly, Australia’s S&P/ASX 200 was set to start the day lower with futures tied to the benchmark at 8,662, compared with its last close of 8,704.6.
Japan’s benchmark Nikkei 225 was set to open lower, with the futures contract in Osaka last traded at 40,650 against the index’s last close of 40,674.55.
— Lee Ying Shan
Stocks close lower on Tuesday
Stocks closed lower on Tuesday, as investors turn their attention to the Federal Reserve’s interest rate decision.
The S&P 500 slipped 0.30% to close at 6,370.86, while the Nasdaq Composite lost 0.38% to 21,098.29. The Dow Jones Industrial Average slipped 204.57 points, or 0.46%, to finish the session at 44,632.99.
— Brian Evans
Tariffs will still deal a blow to economic growth despite recent progress, says UBS
Investors should remain vigilant and not look past the potential risks of tariffs, according to UBS.
“The impact of tariffs can’t be overlooked even though recent deals have provided greater clarity. While the 15% tariff rate on most EU and Japanese goods was lower than earlier threats from the U.S., the higher levies will still create headwinds for growth,” said Ulrike Hoffmann-Burchardi, chief investment officer for the Americas and global head of equities at UBS Global Wealth Management.
“While our base case is that the resilience of the US consumer should help the U.S. economy avoid recession, a larger-than-expected impact on inflation or more severe hit to corporate margins could quickly change the current optimistic market narrative,” she added.
— Brian Evans
