M6 failed to "save the day," and Seres' stock price has fallen for 8 consecutive days

On March 23, Huawei held a “dumpling-style” spring launch event, and the most attention-grabbing “dumpling” was undoubtedly the Ask界 M6.

Holdings and cautious users are hoping for a new mainstream model equipped with Huawei’s intelligent driving system at a lower price point, while investors in Seres also expect this new vehicle to boost the stock price.

Since reaching a historical high of 174.33 yuan per share on September 30 last year, the stock has been declining for four consecutive months. Although there was a slight rebound in February, it turned downward again in March. As of the time of writing, the stock has retreated over 44% from its peak, falling for eight consecutive trading days.

Why is it that despite solid performance, the stock price keeps falling? Can the new Ask界 M6, with its product strength, become the key to reversing the trend?

After the Huawei Halo “Diminishes”

On March 24, Seres’ stock price briefly dropped more than 4% intraday, and on the 25th and 26th, it continued to decline. For investors hoping that new cars could boost the market, this is clearly not an ideal trend.

This trend contrasts sharply with Seres’ stock performance after the launch of the new Ask界 M7 in September last year. Within a week of its debut, Seres’ stock rose nearly 20%.

Why?

The Ask界 series inherently carries Huawei’s DNA. At the March 23 launch event, Huawei Terminal BG CEO He Gang stated that the total delivery volume of HarmonyOS Intelligent Driving across the entire series has exceeded 1.3 million units, achieved in just 43 months. Meanwhile, more automakers are choosing to join Huawei’s ecosystem. According to statistics, by 2026, there will be 80 models equipped with Huawei’s Qian Kun intelligent driving system, and the scale effect is accelerating.

The expanding circle of Huawei’s ecosystem also means that Seres’ uniqueness is being diluted.

Previously, Seres was the “lone wolf” in Huawei’s intelligent vehicle model. HarmonyOS cockpit and intelligent driving systems were all integrated into Ask界, creating a high level of scarcity and imagination, and its stock price was once viewed as an valuation anchor for Huawei’s automotive concept.

Now, Chery, BAIC, JAC, and others have entered the scene, with the “Five Realms and Three Borders” gradually taking shape. Each new brand launch dilutes the original technological halo and naturally triggers a revaluation of related targets.

This is not only a problem faced by Seres; the recent market performance of JAC Motors and BAIC Blue Valley, both associated with Huawei’s automotive concept, has also been relatively flat. BAIC Blue Valley’s stock has been weakly oscillating between 7-8 yuan over the past two months, while JAC’s stock has generally declined after two “big investors” entered, with a drop of over 20% in the past 20 trading days.

Compared to JAC and BAIC Blue Valley, Seres’ decline has been larger and longer.

Stock Price Falling, Performance Still Good

In fact, Seres’ profitability data is quite impressive. The Q3 financial report shows that Seres achieved a revenue of 110.534 billion yuan and a net profit attributable to shareholders of 5.312 billion yuan in the first three quarters, up 31.56% year-on-year. This performance stands out among new car-making forces.

By comparison, Li Auto’s full-year net profit attributable to shareholders in 2025 is 1.139 billion yuan, Leap Motor’s is 540 million yuan, while Xpeng and NIO achieved profitability in Q4 but still posted annual losses.

In terms of sales, December set a new record with over 60,000 units sold for the first time. Q4 sales increased by over 50% year-on-year and over 30% quarter-on-quarter. The high-end Ask界 M9 has long been the sales champion in the 500,000-yuan market segment.

Given such solid fundamentals, why hasn’t the stock price risen accordingly?

Industry fundamentals may offer some clues. This year, under the backdrop of a declining purchase tax policy, even with the China Association of Automobile Manufacturers predicting a domestic auto sales volume of 27.35 million units—up just 0.2% year-on-year—growth is nearly flat. Some market forecasts are even more pessimistic, expecting the full-year sales to fall back to around 25 million units.

Meanwhile, the penetration rate of new energy vehicles in China has surged from 5.8% in 2020 to about 53.9% in 2025, nearly tenfold. But in 2025, the penetration rate remains around 50%, fluctuating within a narrow range.

Seres itself has reached a new crossroads. Since the launch of Ask界’s first model, almost every highlight performance has been closely tied to Huawei. From technology to branding and channels, Seres’ integration with Huawei has become so deep that it is almost inseparable.

Looking at procurement, from 2022 to the first half of 2025, Seres has spent a total of 75 billion yuan purchasing core components like intelligent driving and cockpit systems from Huawei. In the first half of 2025 alone, this accounted for about one-third of total procurement, meaning that for each vehicle sold, Seres pays Huawei about 136,000 yuan.

Regarding channels, Ask界’s sales heavily depend on Huawei’s over 700 experience centers nationwide. This system has enabled Seres to reach consumers quickly, but at the same time, advertising, brand stores, and channel service expenses have skyrocketed from 4 billion yuan in 2022 to 18.1 billion yuan in 2024. In the first half of 2025, these expenses still amounted to 8.4 billion yuan, accounting for over 94% of sales expenses. The more impressive the performance, the more obvious this cost structure becomes.

However, as the penetration of new energy vehicles reaches a plateau and growth slows, Seres is also entering the second half of market competition.

In this highly competitive phase, as the “Huawei halo” around Ask界 gradually diminishes with more brands entering the market, how to maintain “technology, luxury, and intelligence” in price wars has become an important indicator for investors observing Seres.

The subsequent performance of Ask界 M6 will be particularly critical.

Can It Live Up to the M7 Glory?

But based on the initial reservation performance of Ask界 M6, it clearly falls short of the 2025 September launch of Ask界 M7.

Order data is the most direct signal. Within 24 hours of release, pre-orders exceeded 60,000 units. While this is not bad in the industry, compared to Ask界 M7’s 150,000 orders in the first 24 hours last September, the gap is obvious. Less than a year apart, both models are under the Huawei halo, but the difference is stark.

Ask界 M6 continues the brand’s usual high standards. It excels in space, with many highlights in appearance, front trunk, and cabin design. Its intelligent driving and power configurations are also well-rounded. Most controversy centers on pricing—many users on social platforms have expressed that the price exceeds expectations. The extended-range version starts at 269,800 yuan, and the pure electric version at 289,800 yuan, with optional features pushing the price over 300,000 yuan—significantly higher than the expected 250,000 yuan range.

Additionally, the competitive environment at the time of the two launches was very different. The 25,000-30,000 yuan price segment where Ask界 M6 is positioned is no longer a blue ocean. Tesla Model Y is an unavoidable reference, and models like Li L9, Xiaopeng G6, and BYD Tang EV have already established a foothold.

Externally, Chinese brands are competing fiercely, and internally within Huawei’s ecosystem, models like Zhiji R7, Qijie GT7, and Shangjie Z7T are also vying in the same price range.

The real challenge for Ask界 M6 is: as Huawei’s halo gradually fades and China’s new energy vehicle competition heats up in the second half, how will Seres deliver a performance that earns both market trust and investor confidence?

This is not an issue unique to Seres, but compared to other automakers still “leveraging” Huawei and seeking their market position, Seres has already achieved profitability and has delivered over 70% of the HarmonyOS Intelligent Driving lineup, making it the first to face this challenge.

In fact, Seres has been trying to answer this question. While consolidating its core Ask界 business, the company is also accelerating overseas expansion and exploring innovative businesses like “smart agents,” aiming to open new growth horizons. In February, AITO Ask界 secured its first orders in the UAE, marking significant progress in its global strategy in the Middle East.

The next catalyst for stock price growth may well be hidden in these strategic moves.