Xpeng's SUV Pricing Gambit Rattles Tesla Ahead Of Key Q2 Deliveries
Portfolio Pulse from AJ Fabino
Chinese automaker Xpeng Inc has priced its G6 SUV below Tesla's Model Y, causing its shares to rally over 12%. This move is expected to boost Xpeng's market share and potentially make the G6 one of the best-selling EVs in China. Meanwhile, Tesla is expected to maintain its leading position with predicted Q2 sales of around 448,350 cars. However, Tesla has been outperformed in China by BYD Company, backed by Warren Buffett's Berkshire Hathaway.
June 30, 2023 | 4:42 pm
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NIO Inc expects to deliver 23,000 to 25,000 vehicles in the second quarter, a slight decrease from the previous year.
NIO's expected decrease in vehicle deliveries in the second quarter compared to the previous year could potentially impact its stock price negatively.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEUTRAL IMPACT
Citigroup noted that Xpeng's new price point will appeal to EV customers that can’t afford the pricier Model Y or Xpeng's own P7i.
Citigroup's note on Xpeng's pricing strategy indicates a positive outlook for the company, but it's not clear how this will directly impact Citigroup's own stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
Despite competition, Tesla is expected to maintain its leading position with predicted Q2 sales of around 448,350 cars. However, it has been outperformed in China by BYD Company.
Tesla is expected to maintain its leading position in the EV market, but it faces stiff competition in China, particularly from Xpeng and BYD Company.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Berkshire Hathaway, which backs BYD Company, benefits from the latter's performance in China.
As a backer of BYD Company, Berkshire Hathaway stands to benefit from the company's strong performance in the Chinese market.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Berkshire Hathaway, which backs BYD Company, benefits from the latter's performance in China.
As a backer of BYD Company, Berkshire Hathaway stands to benefit from the company's strong performance in the Chinese market.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
BYD Company, backed by Warren Buffett's Berkshire Hathaway, has outperformed Tesla in China.
BYD Company has managed to outperform Tesla in the Chinese market, which is a significant achievement given the size and growth potential of this market.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Xpeng's shares rallied after pricing its G6 SUV below Tesla's Model Y. This move is expected to boost Xpeng's market share.
Xpeng's aggressive pricing strategy for its G6 SUV is expected to boost its market share and potentially make it one of the best-selling EVs in China. This has led to a rally in its shares.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100