AI TRENDS | Jefferies Turns More Positive On Xpeng After Hong Kong Roadshow

Jefferies said it has turned more positive on Xpeng after participating in the automaker's roadshow in Hong Kong, according to ETNet. The broker said Xpeng's fourth-quarter outlook looks attractive, with monthly deliveries expected to exceed 60,000 vehicles by year-end. It also expects the company's export business to scale up and generate vehicle gross margins above 20%, while AI robot IRON and Robotaxi are nearing commercialization. Jefferies said the market has not fully reflected overseas earnings contributions or the upside from AI, and it reiterated a Buy rating with a target price of HK$19.4. Xpeng management said September deliveries are on track to meet guidance of 37,900 to 44,000 vehicles. The main issue is a delay of about one month in a low-cost L03 part from a small supplier, but cancellation rates remain low and management does not expect material compensation costs. The company also said new model launches remain on schedule, with the G9L due to launch in September and begin mass deliveries in October, while the L05 is set to launch in October and start deliveries in November. Management added that Xiaomi's new car launch has not had a noticeable impact on orders, citing limited overlap in premium pricing and differences in powertrain and smart-driving systems.