XPeng Launches Seven-Year Low-Interest Financing to Boost Sales Amid Competition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: stocktwits
- Financing Offer Launch: XPeng has introduced a seven-year low-interest financing option for vehicles purchased between January 21 and 31, allowing monthly payments to be as low as 1,355 yuan, aimed at reducing upfront ownership costs amid competitive pressures.
- Market Reaction: Despite the new financing offer, XPeng's shares fell over 2% in premarket trading on Thursday, indicating market concerns regarding the effectiveness of its sales strategy.
- Industry Trend: This move mirrors Tesla's recent financing strategy, which announced on January 6 that it would offer seven-year loans for its Model 3 and Model Y at rates as low as 0.98%, highlighting the industry's urgent need to stimulate demand without resorting to price cuts.
- Policy Support: Chinese policymakers are urging increased financial incentives for vehicle purchases, as automakers pivot to low-rate financing to enhance competitiveness in a market facing the impending return of purchase taxes.
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: 18.790
Low
20.00
Averages
29.67
High
50.00
Current: 18.790
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.
