Li Auto Stake Sold for $33M While Alibaba, Tencent Lose $66B on AI Uncertainty
RWC Asset Advisors dumped 1.64 million Li Auto shares for $33 million, equal to 6.8% of fund assets, after Li Auto slid 38% on weak earnings and Chinese EV headwinds. Alibaba and Tencent lost $66 billion as investors balked at unclear AI monetization, with Alibaba’s net income diving 67%.
1. RWC Asset Advisors Exits Li Auto Stake
RWC Asset Advisors sold its entire Li Auto position of 1,638,544 shares for approximately $33 million, representing 6.8% of the fund’s assets. This exit follows a 38% year-over-year decline in Li Auto shares driven by weak earnings, falling revenue and pressure in the Chinese EV market.
2. Alibaba and Tencent Lose $66 Billion on AI Uncertainty
Alibaba and Tencent erased about $66 billion in combined market value after failing to present clear timelines or strategies for monetizing artificial intelligence. Alibaba suffered its steepest US-listed share drop since October as quarterly net income plunged 67% as AI-related costs rose and a broader consumer slowdown weighed on margins.
3. Alibaba’s AI Investment Strategy
Alibaba is committing over $53 billion to data centers and AI infrastructure while targeting $100 billion in cloud and AI revenue over the next five years. The company has begun rolling out new AI products and raising cloud service pricing as it seeks to translate technology investments into measurable returns.