Sales of Xpeng G6, a Tesla Model Y competitor, are soaring
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Xpeng, the well-known Chinese electric vehicle company, announced strong demand for its upcoming G6 model. As a result, the Xpeng stock price soared by more than 10% in the premarket session as the numbers helped to offset the recent news.
In a Tweet, Xpeng said that the company’s new G6 vehicle had achieved over 25k reservations in about three days. The vehicle will start at RMB 263,900 for the cheapest variant and RMB 363,900 for the most expensive variant.
The new good news comes a few days after Xpeng announced its May deliveries. As I wrote here, the company delivered 18,230 vehicles in the first quarter, down from 34,561 in the same quarter in 2022. It was also lower than the 22,204 that it sold in Q4.
There are signs that the Chinese EV market is slowing. On Friday, we wrote that Nio’s business was struggling after the company published weak results. As a result, the company became the first automaker to cut prices of its all vehicles by $4,200. Companies never cut prices when there is strong demand of its products.
Another challenge is that the EV sector is being saturated. There are now almost 100 EV companies in the country. Unlike firms like Tesla, most of them are targeting Chinese customers. As such, the rising competition will make it difficult for them to compete. Xpeng’s G6 is a SUV inspired by the shape of water and will compete with the likes of Tesla Model X and Hyundai’s IONIC. Its key benefit is that it can travel for 300km in a 10-minute charge
The post Sales of Xpeng G6, a Tesla Model Y competitor, are soaring appeared first on Invezz.
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