Bearish bets on Li Auto Inc. have surged to record levels, reversing a profitable short trade from last year. The Chinese electric vehicle maker now faces mounting pressure from intensifying competition in the premium SUV segment, with rivals like Nio and Xpeng aggressively expanding their lineups.

This shift reflects broader market concerns over Li Auto's ability to defend its margins and market share. As the EV price war continues, investors question the company's growth trajectory and its standing against more established global automakers entering China's premium space.

The rising short interest signals deepening skepticism about Li Auto's valuation and future profitability. Market watchers will monitor upcoming quarterly results for signs of resilience or further erosion against competitors. The company's response to this pressure will be critical for its stock performance.