Li Auto Gains on Beijing’s Level 3 Autonomous Driving Nod
Li Auto (LI) shares advanced after Chinese regulators approved level 3 autonomous vehicle testing in designated Beijing zones. The clearance permits hands-off driving under strict speed limits and supervision—a milestone for China's EV sector amid slowing auto sales.
The approval signals regulatory momentum for advanced driver-assist systems, with Li Auto joining Xpeng, Changan, and BAIC in the level 3 race. Investors anticipate the MOVE will accelerate demand for LiDAR sensors and high-performance ECUs in China's $15B autonomous driving market.
While operational scope remains constrained to specific urban routes, the trials lay groundwork for commercial deployment. Li Auto's stock reflects Optimism that regulatory sandboxing may offset macroeconomic headwinds in the world's largest EV market.
