Xpeng Inc (NYSE:XPEV) stock is in recovery mode, helped by an analyst upgrade, following last week’s downbeat earnings report – which on Thursday showed a wider-than-expected net loss for its second quarter.
The Chinese Tesla challenger reported a net loss of 2.8 billion yuan (US$390 million), up from 2.7 billion yuan in the same period last year, and its biggest quarterly loss to date. Revenue was marked at 5.06 billion yuan (US$693.7 million) which was in line with market expectations, albeit it still represented a 31% decline year-on-year.
It pointed to inventory write-downs, increased sales promotions, and the expiration of Chinese EV subsidies as negative factors on its business.
Bank of America has, however, upgraded the stock to ‘Buy’ from ‘Neutral’, pitching a price target some 21% above current levels, at US$22.00, driven by what’s described as a more positive outlook.
In New York, XPeng stock is up 89 cents or 5.9% in premarket trade changing hands at US$15.87 per share.