XPeng downgraded to Underperform at Jefferies ahead of ‘challenging year’

As previously reported, Jefferies analyst Johnson Wan downgraded XPeng (XPEV) to Underperform from Hold with a price target of $4.20, down from $18.60, telling investors that he expects a "challenging year" for China’s automakers. The "honeymoon stage of early NEV adoption" is coming to an end, there is intensified competition under a price war led by Tesla (TSLA), and the removal of EV subsidies and rising lithium prices "could see margins collapse" for the group, Wan argues.