Xpeng

With margins and cash burn looking worse following first-quarter earnings, Xpeng management may be making its last stand with the G6, Deutsche Bank said.

Xpeng will open up the MPV market to a younger demographic with the X9, said He Xiaopeng, chairman and CEO of the EV maker.

Xpeng aims to reach 15,000 monthly deliveries in the third quarter and 20,000 monthly deliveries in the fourth quarter, its management said.

"Xpeng delivered even softer 1Q23 results than we previewed, accompanied by a muted 2Q outlook," Edison Yu's team said.

Xpeng reported a negative 2.5 percent vehicle margin for the first quarter, a decline attributed to increased sales promotions and the expiration of the NEV subsidy.

Xpeng management previously said that the G6 will be officially launched and delivered by the end of the second quarter, with a price range of RMB 200,000 - 300,000.

Xpeng's financial performance in the first quarter and its outlook for the second quarter will be weak, though the company may see a turnaround after the launch of G6, according to Edison Yu's team.

Xpeng delivered 18,230 vehicles in the first quarter, slightly above the lower end of its guidance range of 18,000 to 19,000 vehicles.

The P7i, which was launched in March, continues to gather strong order momentum and the company is significantly ramping up production, which will accelerate customer deliveries in the near future, Xpeng said.

The G6, a new energy SUV with a price range of RMB 200,000-300,000, will be officially launched and delivered by the end of the second quarter, Xpeng said previously.