American depositary receipts (ADRs) of Li Auto ( LI ) cratered Wednesday after the Chinese electric vehicle (EV) manufacturer’s profit sank on higher costs and price cuts as slumping EV demand increased competition.

The company reported second-quarter net income tumbled 52.3% year-over-year to 1.1 billion yuan ($151.5 million) and adjusted earnings per ADS dipped 45% to 1.42 yuan ($0.20), although both beat consensus estimates of analysts polled by Visible Alpha. Revenue rose 10.6% to 31.7 billion yuan, below estimates.

CFO Says Li Auto Faced ‘Intense Market Competition’

Chief Financial Officer (CFO) Tie Li said the company faced “intense market competition” in the period, and the results were also negatively impacted by the costs from ramping up production of the new Li L6 five-seat family SUV.

“As Li L6 production stabilizes and our cost reduction and efficiency enhancement measures take full effect, we expect an increase in both our margins and cash flow in the second half of the year,” the finance chief added.

Li Auto ADRs plummeted 17% to $17.58 an hour before the closing bell Wednesday. They have lost more than half their value this year.