Credit: XPeng

Morgan Stanley reiterates XPeng’s price target following July delivery numbers

Written by Cláudio Afonso | | LinkedIn | Twitter

Morgan Stanley analyst Tim Hsaio released a new note on XPeng reiterating the firm’s Overweight rating and $41 price target on the shares. Based on the last closing price of $24.47, Hsiao sees a 67.5% upside potential on the EV maker shares following a better than expected July delivery numbers.

The analyst said that “overall July sales volume came in slightly better than the reduced market expectation thanks to a more significant sales upturn at the end of the month, likely driven by promotions,” The Fly initially reported.

In August, XPeng plans to begin accepting reservations for its new, flagship G9 SUV followed by an official launch in September 2022.

Hsiao commented saying, “all eyes are on the G9 launch, as the company plans to take pre-orders for the vehicle in August, followed by an official September rollout”.

The EV maker delivered 11,524 vehicles in July 2022, representing a 43% increase year-over-year and a 24.65% from the previous month with year-to-date deliveries reaching 80,507 vehicles, a 108% increase year-over-year.

XPeng detailed that deliveries included 6,397 P7s, 3,608 P5 smart family sedans and 1,519 G3i SUVs with the cumulative deliveries reaching nearly 220,000 as of the end of July 2022.

According to recent reports, the company made a discount of 5,000 – 10,000 yuan ($740 – $1481) for all its models in China due to the surge in production capacity and insufficient order reserves. In an interview with the local media, XPeng Motors’ PR Department answered “I don’t want you to follow”. The price reductions are scheduled to last until the last day of the month.

The company is reportedly preparing to release a new version of its sedan P7 by mid-2023 and the first pictures were exposed on the internet suggesting some interior and exterior changes.

The new XPeng P7 will feature a multi-function steering wheel similar to the G9 which adopts the design of metal buttons and rollers reducing the probability of accidental touch. The model is expected to be built on the 800V high-voltage SiC platform and will be able to add over 200kms in only 5 minutes.

Recently, XPeng CEO He Xiaopeng wrote that he is “very confident in this flagship product” and that the G9 model will be the best SUV under RMB 500,000.

Written by Cláudio Afonso | | LinkedIn | Twitter