XPeng downgraded to Sell from Neutral at Bocom

Bocom analyst Angus Chan downgraded XPeng (XPEV) to Sell from Neutral with a $10.50 price target, representing 32% downside. The analyst believes steady-state monthly sales of the G6 are likely to be only 5,000-6,000 units due to “fierce” competition and potential price cuts from Tesla (TSLA). The firm says G6 sales are likely to fall short of expectations, “adding to XPeng’s challenge in reversing weak sales growth and gross margin pressure.” Bocom believes the stock’s current valuation is high and unsustainable.