SHORT INTEREST IN LI AUTO SURGES TO RECORD 9.6% AMID INTENSE PREMIUM SUV COMPETITION - REPORT

Li Auto (LI) bearish bets are said to be jumping to record levels as the company struggles to fend off rivals in the premium SUV market after earning a reputation as one of Asia’s most profitable short trades last year.

Wagers against the Hong Kong-listed stock climbed to a fresh high of 9.6% of free float as of Wednesday, up from around 1% a year earlier, Bloomberg reported Friday, citing S&P Global data.

The firm has been the most shorted Chinese automaker since September, Bloomberg-compiled figures show.

Over the past year, Li Auto’s (LI) shares have slid roughly 25%, even as Hong Kong equities broadly advanced, turning the stock into a popular target for short sellers.

   

The automaker was the second-most profitable short in Asia-Pacific last year, trailing only Chinese food delivery giant Meituan, according to S3 Partners data. Meituan CEO Wang Xing was once Li Auto's largest external shareholder.

"Shorting demand is expected to remain elevated but volatile as Li Auto navigates a strong competitive environment," said Matt Chessum, director of securities finance at S&P Global Market Intelligence, according to Bloomberg.

Li Auto (LI) reported December 2025 vehicle deliveries of 44,246 units, bringing fourth-quarter deliveries to 109,194 vehicles. This pushed the company’s cumulative deliveries past the 1.5 million mark, reaching 1,540,215 units by year-end. Despite a sequential recovery in December, deliveries fell 24.4% year-over-year, marking the seventh consecutive month of annual contraction for the company.

 

2026-01-23T05:52:32Z