Nomura Downgrades EV Maker XPeng to Neutral, Prefers BYD and Li Auto Over Nio
2022.07.01 18:52
Nomura Downgrades EV Maker XPeng to Neutral, Prefers BYD and Li Auto Over Nio
By Senad Karaahmetovic
Nomura analysts Martin Heung and Benjamin Lo moved to slash their rating on the Xpeng (NYSE:XPEV) shares to Neutral from Buy, citing “unavoidable” short-term cash burn. The price target is cut to $36.30 from the prior $64.60.
Similarly, Nomura analysts slashed the price target on Nio (NYSE:NIO) to $25.80 per share from $51.50 on concerns that the ES7 SUV model’s revenue contribution may persist.
Instead, Nomura advises its clients to buy BYD (SZ:002594) shares due to its vibrant product pipeline and Li Auto (NASDAQ:LI) given the better-than-expected debut of the L9 model.
Earlier today, XPeng reported electric vehicle (EV) deliveries for June of 15,295 units.
This number marks a 133% increase YoY and a 51% increase MoM. All in all, year-to-date deliveries are 68,983.
“Beginning in mid-May, XPeng accelerated deliveries with resumed double-shift production at its Zhaoqing plant, and notably, in June, the Company reached the milestone of 200,000 cumulative deliveries,” XPeng said in a press release today.
XPeng’s P7 model again dominated sales after the company delivered another 8,045 units in June. The company added that it plans to start accepting pre-orders for its G9 SUV starting from August.
