Company Reports

XPeng's second-quarter revenue was at the low end of guidance. Vehicle margin was largely flat sequentially but narrowed to 12% from 14% a year ago, which we attribute to higher raw material costs and retail discounts ahead of next-generation model launches.

XPeng is a leading electric vehicle manufacturer in China, targeting the midrange to high-end segment and tech-savvy consumers. It is mass producing several pure electric models, including the G3/G3i compact sport utility vehicle, or SUV; P7 midsize sedan; P5 compact sedan; G9 midsize SUV; G6 compact SUV; X9 multipurpose vehicle and Mona 03 compact sedan. Retail prices of the current model portfolio range from CNY 120,000 to CNY 420,000 for popular trims, which offer a driving range of roughly 460-700 km. XPeng plans to launch at least 10 new cars for its new model pipeline in 2025-27.

XPeng’s first-quarter revenue was at the high end of guidance. Vehicle margin recovered to 12% from 10% a year ago, benefiting from cost-reduction efforts and higher export mix, but narrowed 1 percentage point from the last quarter due to higher input costs.

XPeng is a leading electric vehicle manufacturer in China, targeting the midrange to high-end segment and tech-savvy consumers. It is mass producing several pure electric models, including the G3/G3i compact sport utility vehicle, or SUV; P7 midsize sedan; P5 compact sedan; G9 midsize SUV; G6 compact SUV; X9 multipurpose vehicle and Mona 03 compact sedan. Retail prices of the current model portfolio range from CNY 120,000 to CNY 420,000 for popular trims, which offer a driving range of roughly 460-700 km. XPeng plans to launch at least 10 new cars for its new model pipeline in 2025-27.

XPeng’s fourth-quarter revenue was at the midpoint of guidance. Vehicle margin recovered to 13% from 10% a year ago, benefiting from larger vehicle delivery volume and cost-cutting initiatives, but stayed flattish from last quarter.

XPeng is a leading electric vehicle manufacturer in China, targeting the midrange to high-end segment and tech-savvy consumers. It is mass producing several pure electric models, including the G3/G3i compact sport utility vehicle, or SUV; P7 midsize sedan; P5 compact sedan; G9 midsize SUV; G6 compact SUV; X9 multipurpose vehicle and Mona 03 compact sedan. Retail prices of the current model portfolio range from CNY 120,000 to CNY 420,000 for popular trims, which offer a driving range of roughly 460-700 km. XPeng plans to launch at least 10 new cars for its new model pipeline in 2025-27.

XPeng’s third-quarter revenue was at the midpoint of guidance. Vehicle margin recovered to 13% from 9% a year ago, benefiting from larger vehicle delivery volume and cost-cutting initiatives.

XPeng is a leading electric vehicle manufacturer in China, targeting the midrange to high-end segment and tech-savvy consumers. It is mass producing eight pure electric models, including the G3/G3i compact sport utility vehicle, or SUV; P7 midsize sedan; P5 compact sedan; G9 midsize SUV; G6 compact SUV; X9 multipurpose vehicle and Mona 03 compact sedan. Retail prices of the current model portfolio range from CNY 120,000 to CNY 420,000 for popular trims, which offer a driving range of roughly 460-700 km. XPeng plans to launch at least 10 new cars for its new model pipeline in 2025-27.

XPeng is a leading electric vehicle manufacturer in China, targeting the midrange to high-end segment and tech-savvy consumers. It is mass producing eight pure electric models, including the G3/G3i compact sport utility vehicle, or SUV; P7 midsize sedan; P5 compact sedan; G9 midsize SUV; G6 compact SUV; X9 multipurpose vehicle and Mona 03 compact sedan. Retail prices of the current model portfolio range from CNY 120,000 to CNY 420,000 for popular trims, which offer a driving range of roughly 460-700 km. XPeng plans to launch at least 10 new cars for its new model pipeline in 2025-27.

XPeng’s second-quarter revenue was close to the high end of guidance. Thanks to larger vehicle delivery volume and cost-cutting initiatives, vehicle margin further recovered to 14% from 10% in the first quarter.

XPeng’s first-quarter revenue was at the high end of guidance. Thanks to larger vehicle delivery volume and cost-cutting initiatives, vehicle margin further recovered to 10.5% from 10.0% in the fourth quarter.

XPeng is a leading electric vehicle manufacturer in China, targeting the midrange to high-end segment and tech-savvy consumers. It is mass producing eight pure electric models, including the G3/G3i compact sport utility vehicle, or SUV; P7 midsize sedan; P5 compact sedan; G9 midsize SUV; G6 compact SUV; X9 multipurpose vehicle and Mona 03 compact sedan. Retail prices of the current model portfolio range from CNY 120,000 to CNY 420,000 for popular trims, which offer a driving range of roughly 460-700 km. XPeng plans to launch at least 10 new cars for its new model pipeline in 2025-27.

XPeng’s fourth-quarter revenue was near the high end of company guidance and in line with our expectations. Thanks to larger vehicle delivery volume and cost-cutting initiatives, vehicle margin further recovered to 10.0% from 8.6% in the third quarter.

XPeng is a leading electric vehicle manufacturer in China, targeting the midrange to high-end segment and tech-savvy consumers. It is mass producing eight pure electric models, including the G3/G3i compact sport utility vehicle, or SUV; P7 midsize sedan; P5 compact sedan; G9 midsize SUV; G6 compact SUV; X9 multipurpose vehicle and Mona 03 compact sedan. Retail prices of the current model portfolio range from CNY 120,000 to CNY 420,000 for popular trims, which offer a driving range of roughly 460-700 km. XPeng plans to launch at least 10 new cars for its new model pipeline in 2025-27.

XPeng’s third-quarter revenue was 7% above the midpoint of guidance but largely in line with our expectations. Thanks to larger vehicle deliveries and lower battery costs, vehicle margin recovered further to 8.6% from 6.4% last quarter.

XPeng is a leading electric vehicle manufacturer in China, targeting the midrange to high-end segment and tech-savvy consumers. It is mass producing six pure electric models: the G3/G3i compact sport utility vehicle, or SUV; P7 midsize sedan; P5 compact sedan; G9 midsize SUV; G6 compact SUV, and X9 multipurpose vehicle. Retail prices of the current model portfolio range from CNY 150,000 to CNY 420,000 for popular trims, which offer a driving range of roughly 460-700 km. For its new model pipeline, XPeng plans to launch at least 10 new cars in the next three years.

XPeng’s second-quarter revenue was 3% above the midpoint of its guidance. Thanks to a better product mix and lower battery cost, the vehicle margin further recovered to 6.4% from negative 8.6% in the second quarter of last year. But the margin improvement was weaker than we expected due likely to pressure from price promotions amid competition. Management is confident the company will continue to record margin recovery for the rest of the year. However, with lower volume, softer vehicle margin, and higher operating expense assumptions, we increase our net loss forecast for 2024-25 and cut net profit estimates for outer years. As a result, we reduce our fair value estimate to USD 12.20 per ADS (HKD 47.30 per share), from USD 14.00 per ADS (HKD 54.90 per share), which implies a forward 2025 price/sales ratio of 1.8 times. XPeng is undervalued, but our preferred pick in the China auto space is Geely, based on valuation grounds and market share gains from its new energy vehicle product, Zeekr.

XPeng is a leading electric vehicle manufacturer in China, targeting the midrange to high-end segment and tech-savvy consumers. It is mass producing six pure electric models: the G3/G3i compact sport utility vehicle, or SUV; P7 midsize sedan; P5 compact sedan; G9 midsize SUV; G6 compact SUV, and X9 multipurpose vehicle. Retail prices of the current model portfolio range from CNY 150,000 to CNY 420,000 for popular trims, which offer a driving range of roughly 460-700 km. For its new model pipeline, XPeng plans to launch at least 10 new cars in the next three years.

Shares of Chinese electric vehicle manufacturers fell 4%-9% on June 12 in Hong Kong on news that the European Commission will provisionally apply additional tariffs of up to 25% on imported electric vehicles made in China starting next month, compared with the 10% standard import duties on EVs. The European Union launched an investigation in October 2023 into subsidies given to EV automakers in China. The EU accused Chinese automakers of unfairly benefiting from incentives and support from the Chinese government and such subsidies have raised overcapacity concerns. The commission alleged that subsidized car imports posed an economic threat to the healthy development of the EV industry in the EU.

XPeng’s first-quarter revenue was 6% above the high end of its guidance. Thanks to a better product mix and lower battery cost, the vehicle margin recovered to 5.5% from negative 2.5% in the first quarter of last year. The margin improvement was stronger than we expected, considering pressure from price promotions amid competition. Management is confident the company will continue to record margin recovery for the rest of the year. We trim our 2024-26 vehicle delivery forecast by 33%-36% to factor in year-to-date sales run-rate and expect XPeng to sell 160,000 vehicles in 2024. With lower volume, better margin, and higher operating expense assumptions, as the company accelerates overseas development, we reduced our net loss forecast for 2024-25. Still, we cut net profit estimates for outer years. As a result, we reduced our fair value estimate to USD 14.00 per ADS (HKD 54.90 per share) from USD 15.90 (HKD 61.70), which implies a forward 2024 price/sales ratio of 2.5 times.