© Reuters Morgan Stanley remains Bullish as seasonal spike pushes XPeng (XPEV) ahead of guidance
By Michael Elkins
Morgan Stanley reiterated an Overweight rating and $12.00 price target on Xpeng (NYSE:) following the Chinese electric vehicle maker’s December results. The company’s December deliveries declined 29% YoY but increased 94% MoM to 11,292 units, bringing its 4Q22 deliveries to 22,204 units. Slightly ahead of management’s guidance of 20K-21K.
According to Morgan Stanley analysts, the end-of-the-year spike was driven mainly by seasonal demand and accelerating G9 deliveries of 4,020 units. Total deliveries for the 2022 year came to 120.7K units, up 23% YoY.
XPeng announced that they will continue to offer all NEV purchase subsidies (RMB10K-13.8K per vehicle) which had expired on Dec. 31, 2022, and keep the MSRP for its current model lineup unchanged into 2023.
The company had previously commented that they would still be willing to subsidize NEV sales after government incentives end as the marginal contribution from the costly subsidies have been falling. Morgan Stanley expects more OEMs will follow suit.
Shares of XPEV are up 5.63% in pre-market trading on Tuesday.
Be the first to comment