Daiwa downgrades XPeng to Sell from Buy on ‘weakened competitiveness’

Daiwa analyst Kelvin Lau downgraded XPeng to Sell from Buy with a price target of $8, down from $13. The analyst sees challenges for XPeng going forward given more intense market competition and likely slower sales momentum for new energy vehicles in 2023. Xpeng’s "weakened competitiveness" is not just the result of weaker than expected deliveries of its G9 in Q4, but also due to its segment price overlapping with those of BYD and other "strong competitors," Lau tells investors in a research note. He is now "more downbeat" than the market on XPeng’s profitability over 2023 and 2024.