<Research>CLSA Lowers XPENG-W's Target Price to HKD77 Due to Increased Costs Postponing Breakeven
XPENG-W's Market Strategy: XPENG-W's "dual-power strategy" is expected to enhance its market penetration in northern China, as noted in a CLSA research report.
Sales Forecast: Despite anticipated weak domestic automotive demand in 2026, CLSA projects XPENG-W's vehicle sales to grow by 10% year-on-year, reaching 471,000 units.
Challenges to Profitability: The company's path to breakeven may be hindered by increasing raw material costs and higher R&D expenses related to AI in 2026.
Target Price Adjustment: CLSA has reduced XPENG-W's target price from HKD106 to HKD77 while maintaining an Outperform rating amidst sales pressures.
Trade with 70% Backtested Accuracy
Analyst Views on 09868
About the author
He Xiaopeng: Over 10% of Revenue from Technical R&D Historically; Anticipates Profit from Technology in Second Half of 2026 to 2027
Company's Infrastructure Development: He Xiaopeng, Chairman and CEO of XPENG-W, stated that 2023 is the final year for the company's infrastructure development across various dimensions, including organizational, product, and technology.
Future Globalization Plans: The company plans to accelerate its globalization process comprehensively between 2027 and 2028, with a historical investment in R&D exceeding 10% of revenue.
He Xiaopeng Calls for Accelerating the Development of Auto Driving Regulations and Technology from Level 2 to Level 4
He Xiaopeng's Proposals: He Xiaopeng, Chairman and CEO of XPENG-W, proposed advancements in autonomous driving technology from L2 to L4 during the National People's Congress, emphasizing the need for improved regulations and management policies.
Transitioning Policies: He suggested maintaining the stability of the L2 safety regulatory system while facilitating the transition to L4 policies, simplifying the steps to L3, and clarifying registration and traffic management for L4 vehicles.
He Xiaopeng Suggests Gradual Tax Cuts for Flying Cars During Two Sessions
He Xiaopeng's Proposals: He Xiaopeng, Chairman of XPENG-W, proposed delegating low-altitude airspace management authority during the 2026 Two Sessions.
Taxation for Flying Cars: He suggested categorizing taxes for airworthy flying cars and implementing phased tax reductions to lower R&D, production, and marketing costs, aiming to boost market demand.
He Xiaopeng: XPENG-W to Bypass L3 Autonomous Driving and Launch L4 Mass Production; Anticipated Annual R&D Investment Over RMB 4.5 Billion
XPENG's Autonomous Driving Strategy: XPENG plans to skip L3-level autonomous driving and instead focus on launching a mass-produced model with L4 capabilities by 2026, citing the complexity of legal responsibilities and limited user value of L3.
High Definition Maps Upgrade: The company aims to complete the upgrade of high definition maps in major Chinese cities within the year to enhance real-time data support for its vehicles.
Expansion of R&D Team: XPENG is expanding its intelligent team to over 3,500 members to bolster its development efforts.
Investment in Research and Development: The company is committing to an annual R&D investment of at least RMB4.5 billion to support its technological advancements.
2026 XPENG X9 Pure Electric Model Launched with a Starting Price of RMB309,800
Company Announcement: XPENG-W (09868.HK) has launched the 2026 XPENG X9 Pure Electric Edition, featuring advanced technology and design elements.
Product Features: The new model includes 800V+5C ultra-fast charging, a Turing AI chip, active rear-wheel steering, and innovative seating with dual zero-gravity airbags.
Pricing and Variants: The 2026 XPENG X9 is available in five variants, priced between RMB309,800 and RMB369,800.
Market Context: The stock is currently experiencing short selling activity, with a ratio of 30.460% and a short selling value of $168.54 million.
XPENG-W Launches VLA 2.0, Aims for Global Deliveries Next Year; He Xiaopeng: Full Self-Driving Era Expected in 1-3 Years
Launch of VLA 2.0: XPENG-W held its VLA 2.0 intelligent driving launch event, introducing two solutions: a foundational L2++ experience and an advanced L4 experience aimed at achieving driverless capabilities.
Global Road Testing and Deliveries: The VLA 2.0 will begin global road testing soon, with full deliveries expected in 2027, facilitating XPENG-W's international expansion in intelligent driving without the need for extensive local adaptations.
Investment in R&D: The company has invested over 2 billion in R&D and 30,000 card computing power to enhance its autonomous driving technology.
Future of Autonomous Driving: XPENG-W's CEO predicts that full self-driving will become a part of daily travel within the next 1-3 years, marking a significant shift in transportation habits.
He Xiaopeng: Over 10% of Revenue from Technical R&D Historically; Anticipates Profit from Technology in Second Half of 2026 to 2027
Company's Infrastructure Development: He Xiaopeng, Chairman and CEO of XPENG-W, stated that 2023 is the final year for the company's infrastructure development across various dimensions, including organizational, product, and technology.
Future Globalization Plans: The company plans to accelerate its globalization process comprehensively between 2027 and 2028, with a historical investment in R&D exceeding 10% of revenue.
He Xiaopeng Calls for Accelerating the Development of Auto Driving Regulations and Technology from Level 2 to Level 4
He Xiaopeng's Proposals: He Xiaopeng, Chairman and CEO of XPENG-W, proposed advancements in autonomous driving technology from L2 to L4 during the National People's Congress, emphasizing the need for improved regulations and management policies.
Transitioning Policies: He suggested maintaining the stability of the L2 safety regulatory system while facilitating the transition to L4 policies, simplifying the steps to L3, and clarifying registration and traffic management for L4 vehicles.
He Xiaopeng Suggests Gradual Tax Cuts for Flying Cars During Two Sessions
He Xiaopeng's Proposals: He Xiaopeng, Chairman of XPENG-W, proposed delegating low-altitude airspace management authority during the 2026 Two Sessions.
Taxation for Flying Cars: He suggested categorizing taxes for airworthy flying cars and implementing phased tax reductions to lower R&D, production, and marketing costs, aiming to boost market demand.
He Xiaopeng: XPENG-W to Bypass L3 Autonomous Driving and Launch L4 Mass Production; Anticipated Annual R&D Investment Over RMB 4.5 Billion
XPENG's Autonomous Driving Strategy: XPENG plans to skip L3-level autonomous driving and instead focus on launching a mass-produced model with L4 capabilities by 2026, citing the complexity of legal responsibilities and limited user value of L3.
High Definition Maps Upgrade: The company aims to complete the upgrade of high definition maps in major Chinese cities within the year to enhance real-time data support for its vehicles.
Expansion of R&D Team: XPENG is expanding its intelligent team to over 3,500 members to bolster its development efforts.
Investment in Research and Development: The company is committing to an annual R&D investment of at least RMB4.5 billion to support its technological advancements.
2026 XPENG X9 Pure Electric Model Launched with a Starting Price of RMB309,800
Company Announcement: XPENG-W (09868.HK) has launched the 2026 XPENG X9 Pure Electric Edition, featuring advanced technology and design elements.
Product Features: The new model includes 800V+5C ultra-fast charging, a Turing AI chip, active rear-wheel steering, and innovative seating with dual zero-gravity airbags.
Pricing and Variants: The 2026 XPENG X9 is available in five variants, priced between RMB309,800 and RMB369,800.
Market Context: The stock is currently experiencing short selling activity, with a ratio of 30.460% and a short selling value of $168.54 million.
XPENG-W Launches VLA 2.0, Aims for Global Deliveries Next Year; He Xiaopeng: Full Self-Driving Era Expected in 1-3 Years
Launch of VLA 2.0: XPENG-W held its VLA 2.0 intelligent driving launch event, introducing two solutions: a foundational L2++ experience and an advanced L4 experience aimed at achieving driverless capabilities.
Global Road Testing and Deliveries: The VLA 2.0 will begin global road testing soon, with full deliveries expected in 2027, facilitating XPENG-W's international expansion in intelligent driving without the need for extensive local adaptations.
Investment in R&D: The company has invested over 2 billion in R&D and 30,000 card computing power to enhance its autonomous driving technology.
Future of Autonomous Driving: XPENG-W's CEO predicts that full self-driving will become a part of daily travel within the next 1-3 years, marking a significant shift in transportation habits.
