Movement Alert|XPeng Group Falls 3.24% in Regular Trading, Q1 Swings to Loss as Multiple Banks Cut Target Prices

Market Focus06-05

On June 5, XPeng Group-W fell 3.24% in regular trading, trading at HK$64.75 per share, with trading volume of HK$159 million.

On the news front, XPeng's Q1 earnings released on May 28 revealed a swing from profit to loss. The company reported revenue of RMB 13.03 billion, down 17.6% year-over-year, with a net loss of RMB 1.78 billion. Vehicle deliveries totaled 62,682 units, a 33.3% year-over-year decline and a 46.1% sequential drop. Notably, the company had just achieved its first quarterly profit in Q4 last year, maintaining profitability for only one quarter before returning to losses. R&D spending of RMB 2.91 billion rose 46.8% year-over-year, further compressing margins.

Following the earnings release, JPMorgan cut its target price from HK$135 to HK$118, while CMB International lowered its target from HK$94 to HK$82. Additionally, quality control controversies surrounding the XPeng G7 model have been intensifying, with over a hundred complaints on auto quality platforms regarding paint peeling and rust issues.

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