Forbes·2024-09-05 11:00Core Insights - Xpeng delivered 14,036 vehicles in August, marking a 2.5% increase year-over-year and a 26% increase month-over-month, but its year-to-date growth of 16.75% lags behind competitors Li Auto and Nio [1][2] - The company is focusing on the lower end of the EV market with the introduction of the M03 model priced at approximately RMB 119,800 ($17,000), which has already garnered over 30,000 orders in two days [2] - Xpeng's Q2 2024 revenues increased by 54.1% year-over-year to RMB 6.82 billion ($0.94 billion), with gross margins improving to 14% from negative 3.9% in the same period last year [3] Company Performance - Xpeng's stock has seen significant volatility, with returns of 18% in 2021, -80% in 2022, and 47% in 2023, indicating underperformance compared to the S&P 500 in 2021 and 2022 [3] - The stock currently trades at approximately 1.8x forward revenues, suggesting a reasonable valuation in the current market [3] Market Environment - China's economic growth is slowing, with GDP growth at 4.7% in Q2 2024, down from 5.3% in Q1, alongside weak consumer spending and retail sales hitting an 18-month low [1] - New government incentives for electric vehicles, including a subsidy of RMB 10,000 ($1,410) for consumers switching from gasoline vehicles, could support Xpeng's strategy in the lower-end market [2]