XPeng: The Intense Price Wars May Lead To Compressed Margins

Mar. 29, 2023 11:29 AM ETXPeng Inc. (XPEV) StockXPEV2 Comments
Juxtaposed Ideas
13.87K Followers

Summary

  • The ongoing price wars in China had naturally impacted XPeng's deliveries and margins, triggering further headwinds for its forward execution.
  • It also remains to be seen if the appointment of Wang Fengying as the President may reverse the pessimistic market sentiments.
  • However, with the stock recording a moderate recovery despite the double misses and poor forward guidance, we reckon XPEV has found sufficient support here.
  • The strategic choice to offer XNGP separately may also contribute to its positive operating margins by 2025.
  • Therefore, we believe interested investors may still add XPEV at $7s, due to its speculative potential turnaround over the next few years.

Clamp squeezing roll of U.S. 100 dollar bills

John Blottman

XPEV's Speculative Turnaround Story

XPEV 1Y EV/Revenue

In this article, we shall discuss XPEV's prospects after the recent FQ4'22 earnings call on March 17, 2023. The stock's EV/NTM Revenue has been further moderated to 0.82x, lower than its 2Y mean of

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