XPeng delivers 32,158 vehicles in May, up 4% month over month

XPeng Inc. delivered 32,158 electric vehicles in May, a 4% increase from the prior month, as the Chinese EV maker sustained output growth through a competitive pricing environment.

"XPeng's delivery trajectory shows steady operational momentum," JPMorgan analysts said in a note, maintaining an Overweight rating while cutting the price target to HKD118. The stock rose 4.7% on the announcement, with short selling accounting for 32.1% of trading volume.

The May total brings XPeng's year-to-date deliveries to more than 150,000 vehicles. The company said its EVs delivered from January through May are expected to reduce life-cycle greenhouse gas emissions by more than 2 million tons compared with internal combustion engine vehicles, equivalent to the carbon absorption of 33.16 million young trees over a decade.

XPeng competes in China's crowded EV market against BYD, Nio and Li Auto, all of which have engaged in aggressive price cuts over the past year to defend market share. BYD, the country's largest EV maker, reported 331,000 passenger EV sales in April, while Nio delivered 15,620 vehicles and Li Auto delivered 25,700 in the same month. XPeng's average selling price in China ranges from roughly 150,000 yuan to 300,000 yuan ($20,700 to $41,400), placing it in the mid-to-premium segment where margin pressure has been most acute.

The company, headquartered in Guangzhou with manufacturing plants in Zhaoqing and Guangzhou, develops its own full-stack advanced driver-assistance system and in-car operating system in-house. XPeng trades on both the New York Stock Exchange under the ticker XPEV and on the Hong Kong Stock Exchange as 9868.HK. At current levels, the stock trades at a discount to BYD on a price-to-sales basis, reflecting the market's cautious view on whether XPeng can translate delivery growth into sustained profitability amid the price war.

This article is for informational purposes only and does not constitute investment advice.