Why XPeng Shares Are Falling Today

·2 分鐘文章
  • XPEV shares are trading lower by 4% today after the Bernstein analyst downgraded the stock.

  • Bernstein analyst Eunice Lee downgraded XPeng Inc (NYSE: XPEV) from Outperform to Market Perform and lowered the price target from $16 to $12.

  • Lee expects XPeng to face pressure from growing competition and therefore lowered sales volume outlook for P7/P7i, G9, G3i, and P5 models.

  • Sales momentum could increase from Q3 with new launches, but concerns loom over the success of G6 following the disappointing acceptances of P5 and G9.

  • Also Read: XPeng Q4 Highlights: Registers 47% Decline In Deliveries, Expects Q1 Deliveries Of 18K-19K, Updates On Cost Control Measures

  • The RMB200-300k SUV also faced tough competition from Tesla Inc (NASDAQ: TSLA) and BYD Co, Ltd (OTC: BYDDF) (OTC: BYDDY).

  • The ongoing EV price war also pressurized the margins as XPeng has limited pricing power. Lee projected negative vehicle margins for Q1 as XPeng offered discounts following Tesla's move.

  • The analyst highlighted XPeng's organizational restructuring and cost-cut initiatives likely to improve margins by ten bps. However, the margin expansion is not likely before late 2023 or 2024.

  • Though XPeng revamps its marketing system, Lee finds monetization tricky.

  • XPeng's cash position serves as a confidence boost alleviating concerns about the company going out of business.

  • XPeng must demonstrate the pathway to positive cash flow and profit. Lee pushes out breakeven to 2026.

  • Price Action: XPEV shares are trading lower by 4.29% at $9.49 on the last check Friday.

Latest Ratings for XPEV

Date

Firm

Action

From

To

Feb 2022

Barclays

Initiates Coverage On

Overweight

Jan 2022

Macquarie

Initiates Coverage On

Outperform

Nov 2021

B of A Securities

Maintains

Buy

View More Analyst Ratings for XPEV

View the Latest Analyst Ratings

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