JPMorgan expects Xpeng's sales volume to increase to 300,000 units next year

According to 21st Century Business Herald, Xpeng recently adjusted its production arrangement to improve the production capacity, quality, and delivery efficiency of MONA M03. Xpeng stated that after locking in 30,000 orders within 48 hours of the release of MONA M03, it has received over 2,000 orders per day recently. Institutions believe that with the launch of Mona M03 deliveries in Sep, the introduction of new models and price adjustments are expected to increase sales volume.

JPMorgan's research report pointed out that the expected launch of Xpeng's new models Mona M03 and P7 plus in the fourth quarter can increase quarterly deliveries from approximately 45,000 in the third quarter to approximately 80,000, and contribute to a higher annual sales volume next year, thereby increasing the company's valuation. Looking ahead to next year, the bank currently estimates that Xpeng's sales volume can further increase by 72% to approximately 300,000 units, compared to the expected sales volume of 180,000 units for the whole year of this year.

Accordingly, on the back of a "possible re-rating led by solid volume into 4Q24-2025," and keeping in mind how the stock appreciated by 30% during the G6 launch last year, JPMorgan has upgraded their rating from Neutral to Overweight (i.e., Buy). Price target also gets a bump, rising from USD8 to USD11.50.