China’s Li Auto said its net profits more than halved year-on-year to RMB 1.1 billion ($151.5 million) in the second quarter, eroded by a lower average selling price as competition between the electric vehicle startup and larger rivals, especially Huawei, remains intense. U.S.-listed shares of the Chinese automaker tumbled 16.1% on Wednesday following the release of the earnings report. The L6 crossover, Li Auto’s cheapest model launched in April at a starting price of RMB 249,800, accounted for roughly a third of its quarterly deliveries of 108,581 units in the three months ended June 30. Li Auto also lowered its annual delivery guidance to 500,000 units, down from the 560,000 units previously guided, citing concerns over slowing demand and pricing pressure. [TechNode reporting, Li Auto results]