A wave of upgrades by brokerages
$XPeng (XPEV.US)$ Many brokerages have upgraded the target price by at least a dollar over the past few days. Apparently, they didn’t believe that MONA M03’s sales could sustain beyond the 10k in 52mins phenomenon. However, it continued to hit 30K in 48h and now many has mentioned on weibo that firm orders have exceeded 60k with many test drive till midnight.
Xpeng has released videos that production is running 24h. He Xiaopeng had visited staff with meals and mentioned that M03 “卖爆”, meaning sales has exploded and also every quarter will have a new model or face lifted model coming. The success of M03 has caught many analysts by surprise due to the disappointment after the hype about G6 and many earlier models.
The success is attributed to a very focused customer group and giving them most if not all of the attributes that they wanted at a very affordable price. It should continue to see high demands especially now that there is more visibility with many new owners collecting and driving it. Hope they continue the success in the coming P7+ model.
I am expecting more brokerages to revise their target price upwards especially with the many recent downward revisions after their Q2 results announcement. Expecting the higher end of their Q3 guidance of 45K or even more if deliveries of MONA can keep pace.
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SoundOfMusic : Someone needs to call EU Von De Lying to tell her that Xpeng has an under capacity problem.
SoundOfMusic : Keep the update going. Thanks.
It's always the affordability that creates mass adoption. Xpeng has hit the mark.