Core Insights - XPeng Inc. reported record-breaking vehicle deliveries of 30,895 Smart EVs in November 2024, marking a 54% increase year-over-year and a 29% increase from the previous month [2] - The XPENG MONA M03 model surpassed 10,000 deliveries for the third consecutive month, indicating strong consumer demand [2] - The launch of the XPENG P7+ contributed significantly to delivery momentum, with over 7,000 units delivered within 23 days of its launch [2] Delivery Performance - For the first eleven months of 2024, XPeng delivered a total of 153,373 Smart EVs, reflecting a 26% increase compared to the same period last year [2] - The monthly active user penetration rate for XNGP in urban driving reached 85% in November [3] Market Expansion - In November, XPeng officially entered the Nepal and UK markets, expanding its international presence [4] - The XPENG G6 model gained recognition, winning the 2024 Technology Frontrunner of the Year title at the Danish Car of the Year ceremony [4] Technological Advancements - XPeng successfully tested the industry's first "door-to-door" Advanced Driver Assistance System (ADAS) based on a unified software suite, enhancing user experience across various driving conditions [3]

Investment Rating - The report upgrades the investment rating to "Buy" with a target price of US$16.70, reflecting a significant increase from the previous target of US$7.70, indicating a potential upside of 36% from the current price of US$12.29 [3][7][20]. Core Insights - The report highlights a strong product cycle and the integration of AI technology as key competitive advantages for the company. The sales gross margin for Q3 2024 increased by 2.6 percentage points, driven by the successful launch of the MONA M03 and P7+ models, marking the beginning of a major product cycle [2][3][4]. - The company plans to launch four new models in 2025, incorporating the "Kunpeng Super Electric System," which allows for dual driving modes. The overseas market sales saw a remarkable growth of 70% in Q3 2024, contributing 15% to total sales [3][4][5]. Financial Summary - The revenue for Q3 2024 reached RMB 10.1 billion, with automotive sales revenue of RMB 8.8 billion, reflecting a 29% quarter-on-quarter increase. The average revenue per vehicle for Q3 2024 was RMB 189,000, a decrease of approximately RMB 26,000 due to a higher proportion of lower-priced M03 model deliveries [3][4][16]. - The report projects the company's revenue to reach RMB 40.8 billion in 2024, RMB 76.0 billion in 2025, and RMB 98.3 billion in 2026. The gross margin is expected to improve to 15.3% in 2025 and 18.5% in 2026 [5][16][17]. - The forecasted net loss for 2025 is expected to narrow to RMB 1.05 billion, with a projected profit of RMB 1.73 billion in 2026 [5][16][17]. Valuation - The valuation is based on a price-to-sales (P/S) ratio of 1.5 times the 2025 estimates, leading to a target price of US$16.70, which corresponds to a P/S ratio of 2.8 times for 2024 [20][25]. The report emphasizes that the company deserves a higher valuation due to its strong product cycle, AI-driven product ecosystem, and rapid growth in overseas sales [20].

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company achieved a total revenue of 10.1 billion RMB in Q3 2024, reflecting a year-on-year increase of 18.4% and a quarter-on-quarter increase of 24.5%. The gross margin improved to 15.3%, up 18.0 percentage points year-on-year and 1.3 percentage points quarter-on-quarter. The Non-GAAP net loss was 1.53 billion RMB, a reduction of 45.1% year-on-year and an increase of 25.5% quarter-on-quarter, indicating overall performance met expectations [1][2] Summary by Sections Financial Performance - In Q3 2024, automotive revenue reached 8.8 billion RMB, with a year-on-year increase of 12.1% and a quarter-on-quarter increase of 29.0%. The average selling price (ASP) decreased by 3.6% year-on-year and 16.3% quarter-on-quarter to 189,000 RMB, while delivery volume increased by 16% year-on-year and 54% quarter-on-quarter to 47,000 units. The automotive business gross margin improved to 8.6%, up 14.7 percentage points year-on-year and 2.2 percentage points quarter-on-quarter [2] - Revenue from services and other businesses increased significantly, with a year-on-year growth of 91% and a quarter-on-quarter growth of 1% to 1.31 billion RMB. The gross margin for this segment reached 60.1%, up 24.0 percentage points quarter-on-quarter [2] - As of Q3 2024, the company had approximately 35.75 billion RMB in cash and cash equivalents, with management guiding for Q4 2024 delivery volume between 87,000 and 91,000 units [2] Future Outlook - The company is expected to benefit from a strong model cycle, with new models such as the Mona M03 and the P7+ showing strong order performance. The management anticipates at least four new or refreshed models to be launched in 2025, which is expected to drive sales and gross margin improvements [3] - The introduction of the P7+, which utilizes a new generation of autonomous driving hardware without LiDAR, is seen as a validation of the company's technological capabilities in the competitive smart vehicle market [3] - The report projects Non-GAAP net profits for 2024E-2026E to be approximately -4.78 billion, 5.36 billion, and 11.53 billion RMB, respectively, reflecting an upward revision in profit forecasts due to the anticipated strong model cycle and ongoing collaboration with Volkswagen [4]

Core Insights - XPeng Inc. (NYSE: XPEV) has been one of the best-performing electric vehicle (EV) stocks recently, recovering significantly from an early year selloff [1] - The stock has more than doubled in value since the lows observed in August [1] Company Performance - XPeng's stock performance indicates a strong recovery, with a notable increase in value since August [1] Market Context - The recent performance of XPeng reflects broader trends in the EV market, highlighting investor interest and potential growth opportunities [1]

Financial Performance - XPeng Inc. reported a narrowed loss per share of 27 cents for Q3 2024, compared to a loss of 62 cents in the same quarter of 2023 [1] - Total revenues increased to $1.44 billion from $1.17 billion year-over-year, with vehicle sales contributing $1.25 billion, up from $1.08 billion [1] - Revenues from services and others rose to $190 million from $90 million year-over-year [2] - Vehicle margin improved to 8.6% from a negative 6.1% in the same period of 2023, while gross margin increased to 15.3% from a negative 2.7% [2] Operational Highlights - XPeng delivered 46,533 units in Q3 2024, reflecting a 16.3% increase year-over-year [1] - Research and development expenses decreased to $23 million from $180 million year-over-year, while selling, general and administrative expenses remained flat at $230 million [3] - As of September 30, 2024, XPeng's cash and cash equivalents totaled $5.09 billion, up from $5 billion a year earlier [3] Future Outlook - For Q4 2024, XPeng anticipates vehicle deliveries between 59,500 and 63,500, indicating a year-over-year increase of 168-186% [4] - Recent product launches include the XPENG Kunpeng Super Electric System, Turing AI Intelligent Driving System, and the P7+ smart electric fastback sedan [5]

Financial Data and Key Metrics - Total revenues for Q3 2024 were RMB10.1 billion, up 18.4% YoY and 24.5% QoQ [39] - Vehicle sales revenue was RMB8.8 billion, up 12.1% YoY and 29% QoQ, driven by higher deliveries [39] - Gross margin improved to 15.3% in Q3 2024, compared to -2.7% in Q3 2023 and 14% in Q2 2024 [42] - Vehicle margin was 8.6% in Q3 2024, up from -6.1% in Q3 2023 and 6.4% in Q2 2024, primarily due to cost reduction and improved product mix [42] - R&D expenses increased to RMB1.63 billion, up 25.1% YoY and 11.3% QoQ, driven by new vehicle model development [43] - Net loss narrowed to RMB1.81 billion in Q3 2024, compared to RMB3.89 billion in Q3 2023 and RMB1.28 billion in Q2 2024 [45] Business Line Data and Key Metrics - Deliveries reached 46,533 units in Q3 2024, up 54% QoQ and 16% YoY, exceeding the high end of prior guidance [8] - September deliveries exceeded 20,000 units, a record high [8] - The P7+ model, launched on November 7, received over 30,000 firm orders, with deliveries expected to exceed 10,000 units in December [16][17] - The company expects monthly deliveries to set a record in Q4 2024, aiming to exceed 30,000 units in November [17] Market Data and Key Metrics - Overseas sales increased by 70% sequentially in Q3 2024, accounting for 15% of total sales volume [34] - XPeng ranks first in export sales of Chinese premium BEVs, with the G9 leading in mid-to-large-sized BEV SUVs in Northern Europe [33] - The company plans to expand its international sales network to over 300 stores by 2025, covering over 90% of the EV market outside North America [34] Company Strategy and Industry Competition - XPeng aims to become a global AI-defined car company, leveraging AI to enhance autonomous driving and vehicle intelligence [13][14] - The company plans to launch at least four new models in 2025, including super electric vehicles and extended-range models, with updates to existing models [22] - XPeng is focusing on in-depth, full-scale self-development capabilities in AI, differentiating itself from traditional car companies relying on cooperative supply chain models [14] - The company expects the Chinese automobile industry to enter a knockout phase between 2025 and 2027, with new energy vehicle penetration exceeding 85% [13] Management Commentary on Operating Environment and Future Outlook - Management anticipates significant advancements in autonomous driving and vehicle intelligence starting next year, with AI large models transforming user experiences [15] - The company expects Q4 2024 deliveries to range between 87,000 and 91,000 units, representing an 87% to 95.6% QoQ increase and a 44.6% to 51.3% YoY increase [35] - Total revenue for Q4 2024 is projected to be between RMB15.3 billion and RMB16.2 billion, with a QoQ increase of 51.5% to 60.4% and a YoY increase of 17.2% to 24.1% [36] - XPeng expects to achieve positive free cash flow in H2 2024, with cash on hand exceeding RMB40 billion by year-end [37] Other Important Information - XPeng's AI Hawkeye Visual ADAS solution, which does not rely on HD maps or LiDAR, will be standardized across new and facelifted Max models starting with the P7+ [19] - The company plans to achieve Level 3-like intelligent driving experience by Q4 2025, targeting less than one takeover per 100 kilometers [30] - XPeng's Kunpeng Super Electric Drive System, based on an 800-volt platform, supports a pure electric range of 430 kilometers and a combined range of 1,400 kilometers [25] Q&A Session Summary Question: Technology Gap in Smart Driving - The technology gap in smart driving is expected to widen over the next 3-5 years, with companies requiring full-scale self-development capabilities in software, hardware, and cloud technologies to compete [50][51] - XPeng believes its AI-driven ADAS capabilities will differentiate it from competitors, as users increasingly value smart driving features [52][53] Question: Profitability Outlook - XPeng expects to narrow losses and achieve breakeven by the end of 2025, driven by improved margins, cost reductions, and the launch of higher-margin products like the P7+ [55][57] - The company anticipates healthy cash flow and a strong capital base to support its path to profitability [58] Question: Export Market Strategy - Overseas markets are seen as a robust growth opportunity, with XPeng aiming to expand its international sales network to over 300 stores by 2025 [62][63] - The company plans to offer both BEV and extended-range products to cater to diverse global markets, particularly in regions with limited charging infrastructure [64][65] Question: Production Capacity and Supply Chain - XPeng's current production capacity supports 200,000 to 300,000 units annually, with plans for rapid expansion and low capital intensity [67][68] - The company has long-term production capacity planning until 2026 and is working with suppliers to ensure sufficient component supply [68] Question: Gross Margin Improvement - Q3 2024 gross margin improvement was driven by cost reduction and product mix optimization, with further improvements expected in Q4 due to the launch of the P7+ [73][74] - The company anticipates double-digit gross margins for next-generation models [75] Question: Long-Term Cost Reduction - XPeng sees significant potential for cost reduction through supply chain optimization, economies of scale, and technological innovation, particularly in powertrain and ADAS systems [82][83] - The company plans to adopt a super-integration approach and leverage Tier-1 supplier capabilities to further reduce costs [83][84] Question: 2025 New Model Pipeline - XPeng plans to launch four new models in 2025, including an extended-range model, with refreshes of existing models spread across the year [88] - The company expects moderate growth in 2025, with a stronger second half driven by new product launches [87] Question: Overseas Market Profitability - Overseas markets generally offer higher margins than domestic sales, with XPeng achieving wholesale margins through partnerships with importers and distributors [95][96] - The company is adapting to changing tariff regimes and market conditions to maintain profitability in international markets [97] Question: Customer Expectations and Marketing Strategy - XPeng's strong order backlog for models like the P7+ and M03 is expected to support growth in 2025, with customers valuing the unique value proposition of its products [105][109] - The company does not anticipate significant impact from potential changes in government subsidies, as its products are competitively positioned [109]

Financial Performance - Quarterly total revenues reached RMB10.10 billion, a 24.5% increase quarter-over-quarter [1] - Gross margin was 15.3%, a historical high and an 18.0 percentage point increase year-over-year [1] - Vehicle sales revenue was RMB8.80 billion, up 12.1% year-over-year and 29.0% quarter-over-quarter [4] - Net loss was RMB1.81 billion, a 53.5% decrease year-over-year [6] - Non-GAAP net loss was RMB1.53 billion, a 45.1% decrease year-over-year [6] Operational Highlights - Total vehicle deliveries were 46,533 in Q3 2024, a 16.3% increase year-over-year [2] - The company had 639 physical sales stores across 206 cities as of September 30, 2024 [2] - Self-operated charging stations reached 1,557, including 654 XPENG S4 ultra-fast charging stations [3] Recent Developments - Total deliveries in October 2024 were 23,917 vehicles [13] - Year-to-date deliveries as of October 31, 2024, were 122,478 vehicles [14] - The company launched the P7+ AI-defined smart electric fastback sedan in November 2024 [16] Management Commentary - The company highlighted significant transformation in core competencies and execution capabilities [12] - Management emphasized the importance of AI in the next decade and the company's focus on becoming a global AI auto company [12] - Technology-driven cost reductions and volume growth contributed to the historical high gross margin [12] Business Outlook - The company expects Q4 2024 vehicle deliveries to be between 87,000 and 91,000, a 44.6% to 51.3% increase year-over-year [36] - Total revenues for Q4 2024 are projected to be between RMB15.3 billion and RMB16.2 billion, a 17.2% to 24.1% increase year-over-year [36] ESG Performance - The company received the highest "AAA" ESG rating from MSCI for the second consecutive year [17] - XPENG was named the "Industry Mover" by S&P Global for two consecutive years, the only company in China's automotive manufacturing industry to achieve this [17] Financial Position - Cash and cash equivalents, restricted cash, short-term investments, and time deposits totaled RMB35.75 billion as of September 30, 2024 [10] - The company's total assets were RMB76.43 billion as of September 30, 2024 [47]

Core Insights - XPENG is set to launch its advanced G6 mid-size SUV in the UK in early 2025, marking a significant step in its European expansion strategy [1][6] - The partnership with International Motors Ltd (IML) as the official distributor will enhance XPENG's market presence and support in the UK [1][3] - The UK market is a priority for XPENG, aligning with the country's rapid transition towards electric vehicles and sustainability [1][4] Company Overview - XPENG, founded in 2014, is a leading Chinese AI-driven mobility company focused on designing, developing, and marketing Smart EVs [9] - The company aims to become a global leader in AI mobility, driving the Smart EV revolution through advanced technology [9] Product Launch - The G6 is a pure-electric mid-size coupe SUV featuring high performance, cutting-edge technology, and zero tailpipe emissions [5] - It includes 800-volt supercharging capabilities and an extended driving range, catering to the evolving needs of European consumers [5] Market Context - The UK's electric vehicle market is experiencing rapid growth, driven by ambitious climate goals and strong consumer demand for cleaner transport [4] - The government aims to phase out petrol and diesel cars by 2030, supported by significant investments in charging infrastructure, which has reached 62,536 public charging devices as of July 1, 2024 [4] Strategic Goals - XPENG's entry into the UK aligns with its broader goal of expanding to over 60 international markets by 2025, with a target for half of its sales to come from outside China [6] - The company has previously expanded into several European markets since 2020, including Norway, Denmark, and Germany [6] Safety and Quality Commitment - The G6 has recently received a Euro NCAP 5-star safety rating, emphasizing XPENG's commitment to safety and quality across all markets [6]

Core Viewpoint - The competition between China's electric vehicle (EV) giants, XPeng Inc. and NIO Inc., intensifies as both companies prepare to announce their third-quarter earnings, with XPeng reporting first followed by NIO [1]. XPeng Inc. - XPeng is experiencing a surge in technological innovation, highlighted by the launch of the AI-defined P7+, the AEROHT flying car, and the Kunpeng Super Electric System, which features record-setting charging speeds [2]. - The stock of XPeng is showing moderate bullish trends, with significant buying pressure observed [3]. - From a technical analysis perspective, XPeng's stock is trading at $13.23, above its 20-day SMA ($12.42), 50-day SMA ($11.54), and 200-day SMA ($9.01), indicating bullish signals, although it is below its eight-day SMA ($13.70), suggesting short-term selling pressure [4]. - Analysts project XPeng's third-quarter revenue to be $1.38 billion, with an expected EPS loss of 27 cents per share, indicating potential upside following the earnings report due to its AI-driven strategy and technical setup [5]. NIO Inc. - In contrast, NIO's stock is currently in a bearish trend despite some recent buying pressure [6]. - NIO's stock is trading at $4.71, below all key moving averages: the eight-day SMA ($4.79), 20-day SMA ($5.07), and 50-day SMA ($5.55), which suggests bearish momentum [7]. - Analysts expect NIO's third-quarter revenue to be $2.54 billion, with an anticipated EPS loss of 30 cents per share, indicating that the company has more to prove in the upcoming earnings report [7]. Overall Industry Outlook - The upcoming earnings reports for both XPeng and NIO could significantly influence the next phase of competition in China's EV market, with XPeng positioned as a front-runner due to its bullish indicators and innovation narrative, while NIO faces challenges with its bearish setup [8][9].

XPENG debuts the Kunpeng Super Electric System for fast charging and extended range worldwide.XPENG launches the Turing AI Intelligent Driving System, paving the way for L4 autonomous driving.XPENG announces XPENG AIOS, transforming in-car AI interactions.XPENG AEROHT “Land Aircraft Carrier” global debut flight scheduled this month, presale to open in December this year.XPENG unveils its advanced humanoid AI Robot Iron, marking a new frontier in robotics applications. GUANGZHOU, China, Nov. 08, 2024 (GLOBE ...