Xpeng's stock traded in Hong Kong continues to rally after the announcement of the G6's pre-sale price, currently up about 5 percent.
Xpeng (NYSE: XPEV) shares traded in Hong Kong rallied quickly after pre-sales of the new SUV G6 began, suggesting investors may be bullish on the pricing.
At press time, Xpeng was up 5.03 percent to HK$34.45 in Hong Kong.
Xpeng's local peer Nio (NYSE: NIO) is now down about 0.08 percent in Hong Kong, while Li Auto (NASDAQ: LI) is up 0.8 percent. Hong Kong's Hang Seng Index is up 0.58 percent.
Xpeng opened up more than 2 percent in Hong Kong, but then fell quickly, giving back all of its gains at about 10:20 am.
The company announced at 10:16 am today that the G6 was up for pre-sale, with a starting pre-sale price of 225,000 yuan ($31,610). Its stock price continued to move higher after that.
The pre-sale starting price for the Xpeng G6 is RMB 38,900 less than its direct competitor, the Tesla Model Y, and RMB 84,900 less than the RMB 309,900 starting price for Xpeng's flagship SUV, the G9.
It is important to note that the pre-sale price is not the final price and Xpeng may provide new pricing based on consumer feedback when the G6 is officially launched.
G6 show cars are already available at Xpeng stores, and the model will be officially launched on June 29, with deliveries starting in July, the company said.
Analysts believe the G6 will be critical for Xpeng as the company continues to face weak sales and financial performance.
"With margins and cash burn looking materially worse following 1Q earnings, we believe management may be making its last stand with the G6," Deutsche Bank analyst Edison Yu's team said in a May 30 research note.
The team's previous view assumed Xpeng could see stable natural margin improvement from the sharp drop in battery input prices, but those savings were mostly offset by incremental promotional activity and a poor mix.
" Therefore, the importance of the upcoming G6 has become even GREATER," the team wrote.
Weak delivery performance over the past year has dampened Xpeng shares, and they are down about 11 percent year to date.
XPeng begins pre-sales of G6 with starting price significantly lower than Tesla Model Y
($1 = RMB 7.1187)
