To The Moon

0258 GMT - Li Auto's 2Q will likely be its most challenging quarter in terms of gross margins, Deutsche Bank analyst Bin Wang writes in a note. The Chinese automaker's selling prices for its flagship L7, L8, L9 and Mega models are lower after it cut prices in April, which will pressure its margins, he adds. The company also has an unfavorable product mix as the share of its cheaper L6 SUVs rose. Also, the consumers who bought vehicles before the price cuts were compensated. Considering these factors, Li Auto's 2Q margin will likely to drop 1.5 percentage points on quarter to 19.1% while net profit will likely drop 83% on quarter to CNY102 million, the analyst says. DB maintains a buy rating on the stock with a target price of HK$133.00. Shares were last at HK$74.10.

EV shares slid in premarket trading.Nio fell over 4%; Li Auto fell 2%; XPeng up 0.3%.The European Commission will notify car makers on Wednesday that it will provisionally apply additional duties of up to 25% on imported Chinese electric vehicles from next month, the Financial Times reported, citing people familiar with the matter.Analysts have said they expect tariffs of between 10% and 25% on Chinese EVs. The European Commission has said Chinese EVs receive excessive subsidies.The EU and China

The Biden administration is expected to announce new tariffs on Chinese electric vehicles and other strategic sectors, including batteries and solar equipment, next week, Bloomberg reported citing people familiar with the matter. The news dragged Chinese EV stocks lower in early U.S. premarket trade: NIO -1.9%, Li Auto -1.7%, XPeng -0.6%, BYD's Hong Kong-listed shares -1%. Chinese shares of battery makers CALB and Contemporary Amperex Technology also fell around 2%. The fresh levies are a result of the White House's multi-year review of the Trump-era Section 301 tariffs that began in 2022, according to the report. Last month, Biden had proposed raising tariffs on Chinese steel and aluminum products to 25%, more than triple the current levy of 7.5%. Biden also launched an investigation into Chinese trade practices in the shipbuilding, maritime and logistics sectors, which may lead to fresh tariffs. The new tariffs could push Beijing to retaliate at a time when China-U.S. trade ties

Chinese e-commerce giant Alibaba is back on track to be a top market player after a period of pressure, co-founder Joe Tsai told CNBC’s Emily Tan in an exclusive interview Friday.Questions about Aliba