- XPEV shares are trading lower by 4% today after the Bernstein analyst downgraded the stock.
- Bernstein analyst Eunice Lee downgraded XPeng Inc 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 TSLA and BYD Co, Ltd BYDDF 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.
Market News and Data brought to you by Benzinga APIs
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Posted In:
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
