XPeng (XPEV) began delivering its new G6 electric SUV on Monday, considered a You’re here (TSLA) Model Y challenger and linchpin of beleaguered Chinese startup comeback. XPeng stock fell slightly. Nio’s stock soared.
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The production ramp will be decisive. As of July 6, the wait time for the G6 was 10 weeks as XPeng scrambled to ramp up capacity, according to reports in early July.
Ahead of the G6 launch, Deutsche Bank analyst Edison Yu wrote in a May 31 note to investors:
“With margins and cash burn looking significantly worse after the first quarter results, we believe management (XPeng) may be having their last battle with the G6.”
XPeng’s Startup Rival Nio (NIO) revealed on July 1 that its June electric vehicle sales rebounded strongly thanks to new models. These included the next-generation version of its best-selling ES6 SUV.
Nio launched the ES6 on May 24 and began shipping the same day. Its June sales were boosted by the “rapid ramp-up” of its ES6 SUV, Deutsche Bank analysts said.
This marked a kind of turnaround. In March, Yu said Nio’s poor execution, including a slow ramp up of production of electric vehicles like the ET5 and ET7, left customers frustrated with long wait times for deliveries and drove , in turn, to order cancellations.
XPeng begins shipping the Model Y Rival
On Monday, XPeng began delivering the G6 to several cities, including Shenzhen and Wuhan, it said on social media site Weibo, according to CnEVPost.com. Expansion of deliveries to more cities is planned.
The new G6 was officially launched on June 29 with a starting price of 209,900 RMB (about $29,000). That’s well below the Model Y, which starts at 263,980 RMB.
The startup reportedly received more than 35,000 pre-orders just four days after the G6 went on presale on June 9.
With the G6, XPeng is aiming for 15,000 deliveries in the third quarter and 20,000 in the fourth. For context, XPeng delivered 23,205 EVs in the second quarter, with steady month-over-month improvements.
BYD (BYDDF) and Li-Auto (LI) led second-quarter sales among local EV makers.
Stock XPeng
In the stock market on Monday, XPeng shares lost 0.1% at 2:15 p.m.
XPEV stock has jumped nearly 68% since June 9, when it began G6 presales.
Nio stock jumped 7.9% on Monday and Tesla lost 1.8%. Li Auto fell 0.1%. BYD edged up 0.1%.
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