Morgan Stanley’s optimistic outlook on Xpeng shares
2023.01.03 08:31
Morgan Stanley’s optimistic outlook on Xpeng shares
Budrigannews.com – On Xpeng (NYSE:), Morgan Stanley reiterated its Overweight rating and $12.00 price target. following the Chinese manufacturer of electric vehicles’ results in December. December deliveries decreased 29% year-over-year but increased 94% month-over-month to 11,292 units, bringing the total number of units delivered in 4Q22 to 22,204.
According to Morgan Stanley analysts, the end-of-year spike was primarily driven by seasonal demand and accelerating G9 deliveries of 4,020 units. This was slightly ahead of management’s guidance of 20K-21K. XPeng announced that they will continue to offer all NEV purchase subsidies (RMB10K-13.8K per vehicle) that had expired on December 31, 2022, and that the MSRP for its current model lineup will remain unchanged into 2023. Total deliveries for the year 2022 reached 120.7K, which is an increase of 23% year over year.
Due to the decreasing marginal contribution from costly subsidies, the company had previously stated that they would still be willing to subsidize NEV sales after government incentives ended. Morgan Stanley expects more OEMs will stick to this same pattern.
On Tuesday, XPEV shares are up 5.63 percent in pre-market trading.
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