Li Auto Stock Drops Amid Dampened Hopes For US-China Trade Progress

Li Auto Inc (NASDAQ:LI) shares declined 1.75% to $23.55 on Thursday after China's Ministry of Commerce firmly denied the existence of ongoing trade negotiations with the United States, undercutting market optimism for a potential easing of economic tensions.

What To Know: The news arrives at a delicate time for the Chinese electric vehicle (EV) maker, which has been eyeing international expansion and depends heavily on stable trade policies and sentiment for both investor confidence and supply chain efficiency.

Earlier in the week, comments from U.S. Treasury Secretary Scott Bessent and President Donald Trump suggested a possible review of existing tariffs on Chinese goods, fueling investor expectations of a shift in policy. However, the ministry's categorical denial of any active discussions dashed those hopes.

The lack of progress now signals continued uncertainty over high tariffs that could affect the cost of Li Auto's advanced components, many of which are globally sourced.

For Li Auto, a company with ambitions to compete internationally while maintaining domestic growth, persistent geopolitical friction may impact margins, delay overseas strategies and potentially weigh on future earnings.

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How To Buy LI Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Li Auto’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, Li Auto has a 52-week high of $33.12 and a 52-week low of $17.44.