Xpeng

Fab 5 China EV sales came in stronger than expected as new product cycles at Li Auto and Nio really start to kick in, leading to record monthly volumes despite a weak macro backdrop, said Edison Yu's team.

Xpeng expects deliveries to increase significantly in December as production of the G9 ramps up under normal operating conditions.

Xpeng management expects November deliveries to be no less than 5,800 units, hinting that December deliveries are expected to rebound to around 10,000 units.

"We think a large part of the rally was caused by a short squeeze as investors were caught being too negative on the group given Covid and competition concerns," said Deutsche Bank analyst Edison Yu's team.

Xpeng delivered better-than-expected third-quarter operating results, accompanied by a slightly better-than-feared outlook.

Xpeng expects fourth-quarter deliveries of 20,000 to 21,000 units, possibly suggesting that its December deliveries are expected to rebound to around 10,000 units.

This is due to Xpeng's recent organizational restructuring and personal matters, the company said in an announcement.

Orders with deposits paid by 24:00 on December 31 will continue to receive the same purchase subsidies as in 2022, Xpeng said.

Nio vehicles registered 3,759 insurance units in the fourth week of November, compared to 2,852, 3,124 and 3,325 units in the previous three weeks.

The key to Xpeng regaining relevance is winning back demand, and that could take several quarters, creating significant uncertainty heading into 2023.