The final price of the Xiaopeng P7+ was -0.2188 million yuan, and the pricing was positive. On the evening of November 7, the Xiaopeng P7+ was officially launched. A total of 3 models were launched, with a price range of 0.1868 million-0.2188 million yuan (RMB, same below). It is in line with the expectation that “the starting price of P7+ may drop to around 0.18 million yuan” in our October 14 report. The Xiaopeng P7+ is positioned as an AI car. It was first equipped with an AI Tianji 5.4.0 system, and its battery life can increase mileage OTA. At the same time, it is the first model equipped with the AI Hawkeye Vision Smart Driving Solution. It fully applies the large end-to-end model and uses AI technology in various aspects such as power, energy consumption, and thermal management. Compared with the P7i, it focuses more on home use, large space, and comfort as selling points. The intelligent driving of the Xiaopeng P7+ is standard in all models. It no longer distinguishes between high and low versions such as Pro and Max. At the same time, it is also equipped with a capacitive steering wheel and a small blue light for smart driving. According to the official announcement, P7+ went public for 12 minutes, and it definitely broke through the 0.01 million order. We believe that the challenge for P7+ is still in terms of production capacity and delivery capacity.
AI car+AI chip+AI smart driving+AI robot. Xiaopeng recently showed its future technological and strategic layout on Science and Technology Day. Among them, globalization, AI, and automobiles are the most critical. 1) Globalization: Xiaopeng has now entered 30 countries and regions, and will expand to 60 countries and regions next year; 2) Xiaopeng's Turing AI chip: Xiaopeng's self-developed Turing AI chip is the world's first chip that can be used simultaneously in AI cars, AI robots, and flying cars. The company expects that by 2030, the demand for computational power on the vehicle side may reach 10,000 TOPS. The Xiaopeng Turing AI chip is customized for large AI models. The chip has a 40-core processor and supports large models with maximum parameters of 30 billion on the local side; 3) Release of the Kunpeng Super Electric System: The Xiaopeng Kunpeng Super Electric System was officially released. The range extender system is based on a global 800V high-voltage silicon carbide platform, equipped with a 5C overcharged AI battery and a hybrid silicon carbide coaxial electric drive. The pure electric battery life of the Xiaopeng Kunpeng super electric system is 430 km, and the comprehensive cruising range exceeds 1,400 km.
Maintain the buy rating, and next year will usher in a big product year. We believe that the product strength and cost performance positioning of the M03 and P7+ will have a positive effect on the models released next year. At the same time, since Xiaopeng has not announced a schedule for the extended-range models, we believe that the market has yet to drive sales growth, and there is still room for an increase in sales next year. We maintain our purchase rating and target price of HK$77.36/$19.91 (XPEVUS), which corresponds to twice the predicted market sales rate for 2025.
