EU announces additional tariffs on Chinese EVs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 12 2024
0mins
Source: SeekingAlpha
- EU Imposes Additional Tariffs on Chinese Electric Vehicles: European Commission to levy tariffs up to 38.1% on Chinese EVs starting July, potentially sparking a global trade war.
- Reason for Tariffs: Decision follows an anti-subsidy investigation into Chinese EVs, concluding unfair subsidization in the value chain causing economic threat to EU producers.
- Tariff Rates: BYD at 17.4%, Geely at 20%, SAIC Motor at 38.1%, and other Chinese EV makers at a weighted average of 21% or 38.1% for non-cooperating companies.
- Tesla's Situation: Tesla may receive an individually calculated duty rate based on a substantiated request.
- Potential Impact: Higher prices for EVs expected due to increased production costs within the EU compared to China, with EU member states set to vote on tariffs before November 2.
Analyst Views on XPEV
Wall Street analysts forecast XPEV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XPEV is 29.67 USD with a low forecast of 20.00 USD and a high forecast of 50.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 19.930
Low
20.00
Averages
29.67
High
50.00
Current: 19.930
Low
20.00
Averages
29.67
High
50.00
About XPEV
XPeng Inc is a holding company mainly engaged in the design, development, manufacturing and marketing of smart electrical vehicles (EVs). The Company develops full-stack advanced driver assistance systems (ADAS) software in house and has deployed such software on mass-produced vehicles. The Company offers various models, including G9 (mid- to large-sized sport utility vehicle (SUV), P7i (sports sedan), G6 (coupe SUV), X9 (seven-seater multi-purpose vehicle (MPV)), MONA M03 (sedan) and P7+ (family sedan). The Company operates stores across China, including both stores directly operated by the Company and franchised stores. The Company also offers technical research and development services, services embedded in a sales contract, maintenance service, supercharging service.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
