Li Auto Inc. (NASDAQ:LI) shares are trading lower on Tuesday.
The company has reportedly initiated substantial modifications to its sales and delivery processes amid an ongoing team restructuring, CnEV Post reported.
Li Auto has combined its retail and delivery departments to establish a larger, unified sales team with a heightened focus on vehicle sales.
Citing a source familiar with Li Auto, the report noted that the reorganization may address tensions between the retail and delivery teams.
Previously, differing performance appraisal standards hindered sales. However, post-merger, their goals have aligned, fostering better sales growth prospects, CnEV Post added.
Tesla, Inc. (NASDAQ:TSLA) introduced the concept of distinct sales and delivery teams upon its China entry in 2013.
This model has since been embraced by domestic automakers like Li Auto, NIO Inc. (NYSE:NIO), and ZEEKR Intelligent Technology Holding (NYSE:ZK), as highlighted in the report.
As per a Li Auto salesperson cited in the report, retail and delivery teams have distinct performance criteria. Retail teams gauge success based on cars sold, while delivery teams focus on delivery rates.
Delays in customer pickups prompt some in the delivery team to suggest order cancellation and reorder next month, potentially impacting sales team performance.
Price Action: LI shares are trading lower by 1.96% to $20.04 at last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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