XPeng on Monday began delivering its new G6 electric SUV, seen as a Tesla Model Y challenger and as a linchpin of the embattled Chinese startup's comeback. XPeng stock edged lower. Nio stock soared.
The production ramp will be key. As of July 6, the wait time for the G6 was 10 weeks as XPeng works to boost capacity, reports in early July said.
Before the G6 launch, Deutsche Bank analyst Edison Yu wrote in a May 31 note to investors:
"With margins and cash burn looking materially worse following Q1 earnings, we believe (XPeng) management may be making its last stand with the G6."
XPeng's startup rival Nio revealed on July 1 that its June EV sales sharply rebounded on the back of new models. Those included the next-gen version of its top-selling ES6 SUV.
Nio launched the ES6 on May 24 and began deliveries the same day. Its June sales got a boost from the "speedy ramp up" of its ES6 SUV, analysts at Deutsche Bank said.
That marked a turnaround of sorts. Back in March, Yu said Nio's poor execution, including a slow output ramp of electric vehicles like the ET5 and ET7, had left customers frustrated at the long wait times for deliveries and led, in turn, to order cancellations.
XPeng Starts Delivering Model Y Rival
On Monday, XPeng began delivering the G6 in several cities including Shenzhen and Wuhan, it said on social media site Weibo, according to CnEVPost.com. Expansion of deliveries to more cities is planned.
The new G6 officially launched on June 29 with a starting price of RMB 209,900 (about $29,000). That is well under the Model Y, which starts at RMB 263,980.
The startup reportedly received more than 35,000 preorders just four days after the G6 went on presale June 9.
With the G6, XPeng is aiming for 15,000 deliveries in the third quarter and 20,000 in the fourth. For context, XPeng delivered 23,205 EVs in Q2, with steady month-to-month improvements.
BYD and Li Auto led Q2 sales among homegrown EV makers.
XPeng Stock
In stock market trading Monday, XPeng stock lost 0.1% to 14.15.
XPEV stock has surged almost 68% since June 9, when it began G6 presales.
Nio stock leapt 7.9% Monday and Tesla shed 1.8%. Li Auto dipped 0.1%. BYD edged up 0.1%.
