Bernstein SocGen reduced its price target on Chinese electric-vehicle maker XPeng to $18 from $20, citing a deeper-than-expected second-quarter loss and softer revenue growth. The bank maintained its Market Perform rating on the New York-listed stock, which closed at $11.16, near its 52-week low of $11.49.
The adjustment follows XPeng’s Q2 results, which showed a net loss of RMB 1.3 billion and an adjusted loss per share of $1.29, compared with a forecast loss of $0.29. Revenue totaled RMB 19.7 billion, missing Wall Street’s estimate of RMB 20.57 billion and reflecting an 8% year-over-year increase.
Vehicle deliveries rose 0.1% year-over-year to 103,000 units, a 64.8% increase from the prior quarter, while the average selling price per vehicle stood at RMB 165,000. Services and other revenue nearly doubled year-over-year to RMB 1.2 billion, including an estimated contribution from Volkswagen. Overall gross margin held steady at 20.7%, with vehicle margin remaining at 12.1%.
R&D expenses climbed 32.1% year-over-year to RMB 2.9 billion, driven by investments in new vehicle programs and AI development. SG&A expenses rose to 12.6% of revenue from 11.9% a year earlier. InvestingPro’s fair value estimate for XPeng remains at $14.78, while Tiger Securities lowered its target to $15 from $20 but kept its Hold rating.
XPeng continues to focus on autonomous driving and humanoid robotics, areas flagged as strategic growth pillars. The company’s balance sheet shows more cash than debt, though profitability is not expected this year, according to InvestingPro.
