By Jiahui Huang

Li Auto's shares surged in Hong Kong after the Chinese plug-in hybrid specialist released photos of its first full-electric SUV model.

Shares rose 13% to 119.90 Hong Kong dollars, or equivalent of $15.42 early Tuesday, outperforming the losses on the Hang Seng Index.

The gains followed the release of two photos of the new Li Auto i8 model on the company's WeChat account after market hours. The model, available in three colors, showcased both the front and rear designs.

The i8 model will be Li Auto's second foray into full-electric vehicles.

The company, known for its plug-in hybrid cars, launched its first full-EV model, the MEGA, in March last year. However, sales fell short of market expectations, and the design received negative feedback on Chinese social media.

CCB International analyst Qu Ke noted i8's similarities with Li Auto's previous models.

"The front design looks like MEGA, but the rear design is more like Li Auto's L series models," he said.

"You could say that the changes of design doesn't look significant, so I bet the interior design wouldn't change a lot either," Ke said, adding that the selling point of the i8 model would likely be its smart-driving features, with investors paying close attention to the price tag.

Li Auto's chairman and CEO, Xiang Li, admitted last year that the operating strategy for the Li MEGA had been miscalculated, and the launch of its first full-electric SUV was delayed from 2024 to the first half of 2025.

"The market may have a high expectation on Li Auto new model launch this year as this is the main story for them in 2025," Nomura analyst Joel Ying said, adding that a successful new model launch in the first half of the year will likely be "the most important catalyst" for the company.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

February 24, 2025 23:08 ET (04:08 GMT)

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