Don't Miss This Emerging Risk From XPeng's Q3 2024 Earnings
- XPeng Inc.'s eye-watering rally since August was dampened after the company reported a tempered sales outlook for Q4 this week.
- Despite optimism for accelerating volume growth, the comparatively softer strength in XPeng's revenue prospects highlights imminent ASP pressures.
- Looking ahead, the introduction of four new models next year, alongside the implementation of an EREV strategy, is likely to reduce visibility on its longer-term fundamental trajectory.
- The related execution risks remain underappreciated at current levels, and will likely diminish the durability of XPEV's valuation premium over its comparable Chinese EV peers in the near-term.
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XPeng Inc. (NYSE:XPEV) has been one of the best-performing EV stocks recently. The stock has largely recovered from its early year selloff, more than doubling in value since August lows, before it recently pared some
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