Shares of rising Chinese electric-car company Li Auto (NASDAQ: LI) cratered 9.8% through 9:45 a.m. ET on Monday as competition heated up in China's domestic electric-vehicle (EV) industry. This morning, the South China Morning Post (a Hong Kong-based, English language newspaper owned by Alibaba) reported that Chinese cellphone giant Huawei is getting into the electric-car space with a new S7 electric sedan built jointly with local automotive company Chery Automobile.    

As SCMP explains it, the Huawei-Chery joint venture (JV) "Luxeed" is primarily aimed at dethroning (NASDAQ: TSLA) as the dominant luxury EV brand in China. But there may be collateral damage in this fight.

Luxeed's S7 is described as a "coupe-like electric vehicle" based on Chery's own E0X platform and "superior to Tesla's Model S in various aspects." And while it's not on the market yet, it will be by November, when production will begin.

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Source Fool.com