Chinese carmaker Li Auto launched a pre-emptive strike against US rival Tesla by offering a new six-seat, fully electric SUV to affluent families on the mainland, as competition in the world’s largest automotive market continues to escalate. Beijing-based Li Auto, one of the only three profitable electric vehicle (EV) makers in mainland China, on Tuesday unveiled the Li i8 – built with autonomous driving technology and a digital cockpit – that would be priced from 321,800 yuan (US$44,889) to 369,800 yuan, with its basic edition able to travel as far as 720km on a single charge. The Li i8 also comes installed with custom refrigerators and plush sofa-like seats, which are expected to elevate passenger comfort and add another dimension to the features inside a luxury EV. “Li Auto wants to make itself distinct from other carmakers,” founder and CEO Li Xiang told the online audience at the Li 18’s virtual launch. “We envision building a mobile home for our clients, creating a comfortable space for them when driving.” Li Auto, founded in 2015, will start delivering the new vehicle to mainland customers from August 20. The launch puts the Chinese carmaker ahead in this market segment against Tesla, which said earlier this month that its first Shanghai-made six-seat Model Y variant would be available this autumn to local clients. “Both Tesla and its Chinese rivals have invested in new models or upgraded variants, as they try to attract more customers,” said Gao Shen, an independent analyst in Shanghai. “Six-seat SUVs have become a new battleground for Tesla and premium Chinese EV makers.” Tesla has yet to unveil prices for its refreshed SUV model, known as the Model Y L, which has a driving range of more than 800km. With three rows of seats, this model would represent Tesla’s most substantial update to its Chinese-made EVs. Prices for the existing five-seat Model Y start at 263,500 yuan. Li Auto has been Tesla’s closest competitor in mainland China’s premium EV segment since 2023. The company’s large SUVs, which offer extended-range technology, have been well received on the mainland, where thousands of wealthy clients were lured away from premium-car assemblers such as BMW and Audi. These vehicles – known as extended-range EVs, a subcategory of plug-in hybrids – are equipped with a small internal-combustion engine that generates additional power to charge the electric battery when needed, in addition to being able to be charged via a power cable. Such extended-range cars can typically travel as far as 1,000km on a single charge, while also costing about 10 per cent less than pure-electric alternatives. The Li i8 will be Li Auto’s second pure electric model, following the launch of its Li Mega multipurpose vehicle in March 2022. Both Tesla and Li Auto, however, face slowing sales on the mainland this year. Li Auto reported 36,279 deliveries in June, down 24 per cent from a year ago. In the first half of 2025, it recorded a 7.9 per cent year-on-year increase in sales to 203,938 units. In 2024, the company posted sales growth of 33 per cent. In June, Tesla’s Gigafactory in Shanghai delivered 61,484 vehicles to Chinese buyers, up 3.8 per cent year on year. Before that, Tesla was stuck in a downward spiral in mainland China, which is also the world’s largest EV market, since late 2024. The US carmaker’s deliveries declined for eight consecutive months from October last year to May.