Shares of XPeng Inc. (XPEV) are taking a hit on Tuesday, joining the broader slump in U.S.-listed Chinese stocks. The decline is being attributed to concerns surrounding the effectiveness of China’s latest economic stimulus measures, which haven’t alleviated investor anxieties. These worries have led to a significant downturn in Chinese stocks, including XPeng, which has seen its share price drop over 25% in the past year.
While investors are grappling with the economic uncertainty in China, XPeng’s latest electric sedan, the P7+, is making waves with strong pre-order numbers. Within just 1 hour and 48 minutes of opening pre-sales, orders for the P7+ exceeded 30,000 units, as reported by CnEV Post, citing a Weibo announcement. This surge in pre-orders suggests significant early interest in the new model, potentially signaling a positive outlook for future sales.
XPeng is taking its P7+ global, launching the model for European consumers in Paris, France. The company has also opened pre-orders in China, starting at RMB 209,800 ($29,600). This price point is notably lower than the starting price of Tesla’s Model 3 in China, which sits at RMB 231,900. Despite this competitive pricing strategy, XPeng CEO He Xiaopeng has emphasized that the P7+ is designed to compete with vehicles in the RMB 300,000 price range, suggesting a focus on a higher-end market segment.
The P7+ is a sizable electric sedan, measuring 5,056 mm in length, 1,937 mm in width, and 1,512 mm in height, with a 3,000 mm wheelbase. This makes it larger than the existing Xpeng P7i sedan.
While XPeng faces the headwinds of a challenging Chinese economic environment, the strong response to the P7+ provides a glimmer of hope for the company’s future growth. The model’s global ambitions and its competitive pricing strategy could position XPeng to attract a wider customer base and solidify its position in the increasingly competitive electric vehicle market.