Xpeng leads slide in HK-listed Chinese EV makers on broader price war concerns

Wuling Motors Holdings

18/01/2023 03:20

** Hong Kong shares of Xpeng Inc  9868.HK  lead slide in
Chinese electric vehicle (EV) makers, falling as much as 6.4% to
HK$35.10, lowest since Nov. 20
    ** Stock set for the biggest daily pct decline since Jan. 6
if losses hold; the biggest percentage decliner in the Hang Seng
Tech Index  .HSTECH 
    ** Xpeng's Hong Kong shares track a 6.3% drop in its U.S.
stock  XPEV.N  as its price cut for some models stokes fears of
broader price war  urn:newsml:reuters.com:*:nL1N3420B7
    ** Intensifying competition in the EV sector and demand
worries in China are forcing automakers to cut prices to sustain
sales volumes
    ** Citi reiterates "sell" rating on Xpeng saying the sector
demand growth will be slowing as new supplies from competitors
are accelerating
    ** J.P. Morgan expects diverging margins trend in 1Q23 amid
subsidy shortfall and elevated battery costs, and as EV price
war emerges again it is possible that more makers will follow
the pricing campaign 
    ** Hong Kong shares of NIO Inc  9866.HK  slips 0.6% and Li
Auto  2015.HK  falls 1.5%  
    ** Hang Seng Commerce & Industry Index  .HSNC  gains 0.4%,
Hang Seng Tech Index  .HSTECH  climbs 0.5% and Hang Seng Index
 .HSI  gain 0.3%
 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))