US Stock Market Move | Li Auto, Inc. Sponsored ADR Class A (LI.US) falls more than 4% as chip price increases bring cost challenges.

On Wednesday, Li Auto, Inc. Sponsored ADR Class A (LI.US) fell more than 4%, to $17.21. On the news front, the CEOs of several car companies, including Li Auto, have repeatedly warned about the cost challenges brought by the rising price of chips this year. HSBC previously released a research report stating that recently, the prices of upstream raw materials such as metals and storage chips have sharply increased, which will bring significant cost pressure to car manufacturers in the short term. The price increase of storage chips may bring a cost increase of 1000 to 3000 yuan, directly impacting the cost structure of electric vehicles. In addition to chips, the fluctuation in prices of raw materials such as lithium for power batteries has further exacerbated cost pressures.