Xpeng Inc. (XPEV, Financial) officially unveiled its latest model, the P7+, which has quickly gained significant market interest. Within the first three hours post-launch, the company reportedly received over 31,000 non-refundable orders. This strong initial demand suggests that Xpeng is on track to exceed an average monthly sales rate of 30,000 units by year-end.
The introduction of the P7+ is anticipated to be a pivotal moment for Xpeng, marking the start of a robust product cycle in the coming year. The P7+ features enhanced automation capabilities and a 50% reduction in the Bill of Materials (BOM) costs for its autonomous driving systems, making it a potential game-changer in the electric vehicle market.
With an appealing price range of 186,800 to 218,800 RMB, the vehicle is expected to achieve monthly sales of 10,000 units, doubling the previous estimate of 5,000 units. As a result of this optimistic sales outlook, the firm's earnings forecasts for the current and next year have been revised. Analysts now project a loss of 3.7 RMB per share this year and 0.6 RMB per share next year, reflecting improved sales expectations. Sales volumes for the years are anticipated to reach 174,000 and 394,000 units respectively.
The company maintains a "Buy" rating with a new target price of 70.8 HKD for its H-shares, up from the previous target of 47.2 HKD.
