By Senad Karaahmetovic
Nomura analysts Martin Heung and Benjamin Lo moved to slash their rating on the Xpeng (NYSE:XPEV) shares to Neutral from Buy, citing “unavoidable” short-term cash burn. The price target is cut to $36.30 from the prior $64.60.
Similarly, Nomura analysts slashed the price target on Nio (NYSE:NIO) to $25.80 per share from $51.50 on concerns that the ES7 SUV model’s revenue contribution may persist.
Instead, Nomura advises its clients to buy BYD (SZ:002594) shares due to its vibrant product pipeline and Li Auto (NASDAQ:LI) given the better-than-expected debut of the L9 model.
Earlier today, XPeng reported electric vehicle (EV) deliveries for June of 15,295 units.
This number marks a 133% increase YoY and a 51% increase MoM. All in all, year-to-date deliveries are 68,983.
“Beginning in mid-May, XPeng accelerated deliveries with resumed double-shift production at its Zhaoqing plant, and notably, in June, the Company reached the milestone of 200,000 cumulative deliveries," XPeng said in a press release today.
XPeng’s P7 model again dominated sales after the company delivered another 8,045 units in June. The company added that it plans to start accepting pre-orders for its G9 SUV starting from August.