Description of the event

Xiaopeng Motors announced sales figures for October 2024. In October, the company delivered a total of 23,917 new cars, up 19.6% year on year and 12.0% month on month. From January to October 2024, the company delivered a total of 12,2478 new vehicles, an increase of 20.7% over the previous year.

Incident comments

The M03 was delivered more than 10,000 in a single month, and 0.024 million vehicles were delivered in a single month in October, setting another monthly record. The company sold 23,917 units in October, up 19.6% year on year and 12.0% month on month, setting a new record for monthly deliveries; from January to October, the company delivered a total of 12,2478 new cars, an increase of 20.7% year on year. Xiaopeng MONA M03 was launched on August 27. Orders continued to rise after launch. Delivery volume exceeded 10,000 in September and October, and the delivery pace exceeded expectations. As production capacity continues to rise, subsequent deliveries are expected to continue to accelerate. As channel changes and marketing increase, the company's sales volume is expected to continue to increase every month as the new car cycle strengthens. The launch of the MONA model was a huge success; the Xiaopeng P7+ positioning AI definition car was launched on November 7 and delivered immediately after launch. With the release of the two new cars, the company is expected to achieve a significant increase in sales in the second half of the year. At the same time, Xiaopeng Motor continues to make efforts in overseas markets, and is expected to continue to contribute to sales and revenue growth. In October 2024, Xiaopeng Motors held the Xiaopeng G6 and G9 press conferences in Dubai to announce its official entry into the UAE market. Up to now, Xiaopeng has listed in the Middle East and North Africa regions, including the United Arab Emirates, Israel, Egypt, Jordan, and Lebanon.

In October 2024, the penetration rate of monthly active users of smart driving in XNGP urban areas reached 86%. AI Tianji 5.4.0 is officially open beta, bringing users a total of 248 feature updates, covering the four major fields of AI smart driving, AI cockpit, AI chassis, and AI connectivity.

On October 14, Xiaopeng P7+ began pre-sale. The pre-sale price started at 0.2098 million yuan, and the pre-sale volume exceeded 0.03 million units in just 1 hour and 48 minutes. Compared to competing products, it is expected to become the next hot model. Major products include BYD Han EV/Xiaomi SU7/Model3/Extreme ZEEKR 001. The P7+'s many features, such as intelligence, high value, and large space, have made P7+ very broad consumer coverage, and the advantages of product power and pricing have made it a hit. At the same time, the company made every effort to guarantee delivery after listing through early production in October and multiple rounds of supplier risk assessments.

Intelligent driving continues to lead the way. With channel changes and the strengthening of the marketing system, the company's sales volume is expected to increase steadily as the new vehicle cycle starts to gain momentum. MONA M03 and P7+ start the company's new car cycle. The effects of scale improvement, platform and technology cost reduction will be further reflected. The business model expansion combined with software profits continues to grow, and the company's future profits are highly flexible. The company's revenue in 2024 is estimated to be 42.7 billion yuan, corresponding to PS 2.2X. Volkswagen Software's revenue reflects significant improvements in financial performance. The company is expected to enter an inflection point in the new car cycle and give it a “buy” rating.

Risk warning

1. Economic recovery is weaker than expected;

2. Increased competition in the industry weakens corporate profits.