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Chinese EV Maker Li Cuts Delivery Forecast, Shares Fall

Li trims its forecast to 24,500 vehicle deliveries for the third quarter from 25,000 to 26,000.
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Li Auto  (LI) - Get Li Auto Report shares fell sharply Monday after the Chinese electric vehicle marker revised its third-quarter delivery estimate downward to 24,500 vehicle deliveries from 25,000 to 26,000 previously.

The company attributed the reduction to a decline of semiconductor production in Malaysia, thanks to the COVID-19 pandemic.

“The recovery of the chip supply has been slower than expected,” Li said.

The stock on Monday traded at $27.01, down 7.1% at last check, far more than the Nasdaq Composite’s 2% slide. Li’s shares have lost 9% in the last three months.

Other Chinese EV shares dropped too Monday, with Nio  (NIO) - Get NIO Inc. Sponsored ADR Class A Report stock down 6.3% at $35.15 and XPeng  (XPEV) - Get Xpeng Report down 6% at $36.66 at last check.

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In other electric auto news, Tesla  (TSLA) - Get Tesla Inc Report plans to expand what it calls full self-driving capability, but the new head of the National Transportation Safety Board reportedly is not so keen on the idea.

The move would help cars wend their way through cities. For now, the driver-assistance system is meant mostly for highways.

But Jennifer Homendy, who last month took over as chairwoman of the NTSB, told The Wall Street Journal that Tesla shouldn’t go ahead with the change before taking care of what the agency sees as safety problems in the system.

“Basic safety issues have to be addressed before they’re then expanding it to city streets and other areas,” she said.

"Full self-driving capability” doesn’t mean what you might think. Tesla tells drivers to stay engaged, with their hands on the wheel.

The company didn’t comment to the Journal.