Group 1 - The European Union is set to activate provisional duties ranging from 17.4% to 38.1% on imported China-made electric vehicles (EVs) starting July 4, which will be in addition to the existing 10% duty [1][2] - Provisional duties can last for up to four months, after which the EU will decide on the implementation of final duties, with a deadline for this decision set for November 3 [1][2] - The EU's motivation for these tariffs stems from concerns over China's subsidization of its EVs, which is perceived as a threat to domestic production and sales [1][2] Group 2 - Negotiations between the EU and China are scheduled to take place in Brussels, with China aiming to halt the tariffs before they take effect [2] - The EU has emphasized that any negotiated outcome must effectively address the issue of subsidization that harms local industries [2] - Both the EU and China face risks; additional tariffs could weaken China's EV market position, while retaliation from China could adversely affect European automakers like Mercedes Benz and BMW [2][3] Group 3 - Many European automakers have significant operations in China, which could lead to complications if China retaliates with tariffs against these companies [3] - BMW's CEO has publicly criticized the decision to impose additional import duties, indicating industry pushback against the tariffs [3] - Shareholders of Chinese EV stocks are advised to remain patient for further updates regarding the tariff situation [3]

Group 1 - The European Commission announced additional duties of up to 38.1% on imported Chinese electric vehicles, effective July 4, which is expected to lead to potential retaliation from China [1] - The U.S. has increased tariffs on Chinese imports, including electric vehicles, with plans to quadruple tariffs on EVs to over 100% and double tariffs on semiconductors to 50% [2] - Chinese EV stocks, including Nio, XPeng, and Li Auto, experienced significant declines in pre-market trading following the news of increased tariffs, reflecting broader losses since the beginning of the year [3] Group 2 - The upcoming tariffs are anticipated to negatively impact stock prices, delivery, and production numbers as accessing and supplying products to European and American markets becomes more expensive [4]

XPeng Inc. NYSE: XPEV is a leading Chinese smart electric vehicle (EV) maker primarily serving the Chinese domestic market. The company is focused on the mid to high-end market with its premium EVs outfitted with advanced driver-assistance systems (ADAS) integrated with connectivity, interactive, user-friendly and cutting-edge technology. XPeng continues to build out its autonomous driving technology in-house.XPeng competes in the Auto/Tires/Trucks sector with competitors including Tesla Inc. NASDAQ: TSLA, ...

Core Viewpoint - XPeng Inc. (XPEV) has seen a 5.4% increase in share price over the past four weeks, closing at $8.15, with a mean price target of $13.95 indicating a potential upside of 71.2% according to Wall Street analysts [1] Price Targets and Analyst Consensus - The average price target for XPEV is based on 13 estimates, ranging from a low of $7 to a high of $24, with a standard deviation of $5.61, indicating variability in analyst opinions [1] - A low standard deviation suggests a high degree of agreement among analysts regarding the stock's price movement direction, which can serve as a starting point for further research [4] Earnings Estimates and Market Sentiment - Analysts have shown growing optimism regarding XPEV's earnings prospects, with two estimates revised higher in the last 30 days and no negative revisions, leading to a 19.3% increase in the Zacks Consensus Estimate [5] - XPEV holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [5] Limitations of Price Targets - Price targets can often mislead investors, as empirical research indicates they rarely predict actual stock price movements accurately [3] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [3]

Core Viewpoint - The Biden administration's increase of tariffs on imported China-made electric vehicles to 100% signifies a serious trade conflict, but XPeng remains a viable investment opportunity despite these challenges [1]. Group 1: Financial Performance - XPeng's "revenues from services and others" surged 93.1% year-over-year in Q1 2024, reaching 1 billion RMB (approximately $140 million), largely due to a strategic partnership with Volkswagen [2]. - The company's total sales for the quarter amounted to $907 million, surpassing Wall Street's consensus estimate of $859 million [2]. - XPeng's net earnings loss was 10 cents per share, significantly better than the anticipated loss of 33 cents per share [2]. Group 2: Delivery Growth - In May, XPeng delivered 10,146 "smart EVs," marking an 8% month-over-month increase and a 35% year-over-year growth [3]. - Year-to-date deliveries reached 41,360 "smart EVs" by the end of May, reflecting a 26% year-over-year increase for that period [3]. Group 3: Market Position and Outlook - Despite the trade tensions, XPeng's strong partnership with Volkswagen positions the company favorably in the market [4]. - XPeng's ability to deliver electric vehicles in China demonstrates its resilience and potential for continued growth in the clean-energy vehicle sector throughout 2024 [4].

Technical Analysis - XPeng Inc. (XPEV) has surpassed resistance at the 20-day moving average, indicating a potential short-term bullish trend [1] - The 20-day simple moving average is favored by traders for its ability to smooth out short-term price trends and signal trend reversals more effectively than longer-term averages [1] Performance Metrics - XPEV has experienced a rally of 5.8% over the past four weeks, suggesting positive momentum [2] - The company currently holds a Zacks Rank of 2 (Buy), indicating favorable market sentiment [2] Earnings Estimates - There have been two upward revisions in earnings estimates for the current fiscal year, with no downward revisions, reflecting positive analyst sentiment [2] - The consensus earnings estimate has also increased, further strengthening the bullish outlook for XPEV [2]

Core Viewpoint - XPeng Inc. is experiencing significant stock price decline, down approximately 45% year-to-date, reflecting broader challenges in the electric vehicle market, including subdued demand and infrastructure concerns [1] Group 1: Product and Delivery Performance - XPeng's product lineup includes models such as P7, P5, G6, G9, and the new X9, with cumulative deliveries of the XP MPV reaching 10,000 units since its January launch [2] - In the first five months of 2024, XPeng delivered 41,360 Smart EVs, marking a 26% year-over-year increase [2] - The upcoming launch of the MONA-branded EV, priced under 200,000 yuan ($27,630), is expected to enhance growth prospects with Level 2 autonomous driving capabilities [2] Group 2: Financial Performance - XPeng reported Q1 revenues of $906.9 million, a 62.3% increase year-over-year, with vehicle margins improving to 5.5% from negative 2.5% in Q1 2023 [3] - Despite a net loss of $190 million, this represents a 41.4% reduction in losses compared to the previous year [3] - For Q2, XPeng anticipates deliveries between 29,000-32,000 units, indicating a year-over-year increase of 25-37.9%, with projected revenues of RMB 7.5-8.3 billion, reflecting a growth of 48.1-63.9% [3] Group 3: Expansion and Market Strategy - XPeng is expanding into European markets, recently entering France, and plans to introduce G9 and G6 models, building on sales success in Norway and Denmark [4] - The company is also penetrating right-hand drive markets like Hong Kong and Southeast Asia through partnerships, reinforcing its global growth strategy [4] Group 4: Technological Advancements - XPeng's proprietary autonomous driving technology and AI capabilities provide a competitive edge, with plans to achieve Level 4 autonomous driving in China by 2025 [5] - The introduction of XOS 5.1.0 at the Beijing Auto Show 2024 showcases advancements in AI integration for smart driving systems [5] Group 5: Valuation and Growth Estimates - XPeng's valuation is currently below its five-year high, trading at a forward sales multiple of 0.92, significantly lower than its five-year median of 2.57 [6] - The Zacks Consensus Estimate projects year-over-year sales growth of 47% for 2024 and 73% for 2025, with expected losses narrowing from $1.68 per share in 2023 to 97 cents in 2024 and 48 cents in 2025 [7] Group 6: Conclusion and Investment Outlook - Despite current losses, XPeng's scaling production is expected to lead to cost reductions and improved financial performance [8] - The company's aggressive growth strategy and focus on innovation position it favorably for long-term success in the EV industry, suggesting potential buying opportunities for investors [9]

GUANGZHOU, China, June 01, 2024 (GLOBE NEWSWIRE) -- XPeng Inc. (("XPENG" or the "Company, NYSE:XPEV), a leading Chinese smart electric vehicle ("Smart EV") company, today announced its vehicle delivery results for May 2024. XPENG delivered 10,146 Smart EVs in May, representing a 35% increase year-over-year and an 8% increase over the prior month. The XPENG X9 notably achieved monthly deliveries of 1,625 units, reaching a cumulative total of 11,456 units, and has continuously held its top-selling position in ...

The world is getting closer to flying cars, creating a massive opportunity for some of the top flying car stocks to buy. XPeng (NYSE:XPEV), for example, is on course to deliver its flying car to customers by 2026. “The reason we are confident, is because we are designing this for the use, not in urban centers, but for outskirts in scenic areas where…we will work with municipalities to create flying parks and flying zones that allow people to enjoy flying without the hassle of getting all the complicated app ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][2] Core Views - The company reported better-than-expected revenue and gross margin performance in Q1 2024, with revenue increasing by 62.3% year-on-year to 6.55 billion RMB, surpassing the expected 5.02 billion RMB. The gross margin improved by 11.2 percentage points year-on-year to 12.9% [1] - The company is expected to transition smoothly in Q2 2024, with a new model cycle beginning in Q3 2024, including the launch of the new Mona brand and a B-class electric vehicle [2] - The collaboration with Volkswagen is anticipated to provide long-term benefits, with expectations of increased revenue and gross margin due to the deepening partnership [2] Summary by Sections Q1 2024 Performance - Revenue for Q1 2024 was 6.55 billion RMB, a year-on-year increase of 62.3% and a quarter-on-quarter decrease of 49.8%. The gross margin was 12.9%, up 11.2 percentage points year-on-year and 6.7 percentage points quarter-on-quarter [1] - Non-GAAP net loss narrowed by 36.3% year-on-year to 1.41 billion RMB, better than the expected loss of approximately 1.47 billion RMB [1] Automotive Revenue and Margins - Automotive revenue in Q1 2024 was 5.54 billion RMB, a year-on-year increase of 57.8% and a quarter-on-quarter decrease of 54.7%. The average selling price (ASP) increased by 31.8% quarter-on-quarter to 254,000 RMB [1] - The gross margin for automotive business improved to 5.5%, up 8.0 percentage points year-on-year [1] Service and Other Income - Service and other income in Q1 2024 was 1 billion RMB, with a gross margin of 53.9%, benefiting from new revenue from the Volkswagen partnership [1] Cost Management - R&D expense ratio decreased by 11.5 percentage points year-on-year to 20.6%, while SG&A expense ratio decreased by 13.2 percentage points year-on-year to 21.2% [1] Future Outlook - The company is expected to launch new models in Q3 and Q4 2024, which will cover key market segments priced between 100,000 to 400,000 RMB [2] - The management anticipates a strong model cycle starting in Q3 2024, with a focus on pricing, supply chain, and order delivery sustainability [2] - The target price has been adjusted to US$10.0, reflecting a valuation of approximately 1.3x 2024E P/S [2]