The analysis on Xpeng seems too focused on margins, which might not be the best benchmark at this stage of its growth. The priority should be on delivery volumes, as every car not sold strengthens competitors instead. High delivery numbers also enhance brand visibility and consumer awareness, crucial in competitive markets like Southeast Asia and Europe.
Xpeng is strategically positioned in these regions, targeting emerging and EV-friendly markets. Focusing on deliveries will build scale and consumer trust, paving the way for improved margins later. Margins are a lagging indicator in this context; volume is the key driver for long-term success.
XPeng: Not Good Enough Yet To Buy
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