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<Research Report>M Stanley Lifts TPs on LI AUTO-W, XPENG-W, Cuts TP on BYD COMPANY
Tesla (TSLA.US)'s price cuts in the Mainland China market triggered a wide-spreading pricing competition, which, coupled with the weak sales performance year to date, weighed o...
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<Research Report>M Stanley Lifts TPs on LI AUTO-W, XPENG-W, Cuts TP on BYD COMPANY
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Tesla (TSLA.US)      's price cuts in the Mainland China market triggered a wide-spreading pricing competition, which, coupled with the weak sales performance year to date, weighed on the sales volume and profit margins of electric vehicle brands in 1H23, Morgan Stanley remarked.

That said, the broker believed that NEV makers' potential in ramping up the sales volume in 2H23 may have been underestimated, and forecast the battery costs for the makers to decrease by 20-25% over the period. In fact, Nio, Xpeng, Li Auto and BYD were favored for their strong balance sheets and close supply chain engagement -- critical factors that enabled them to further fund their R&D efforts and investments during the economic downturn.

Related NewsM Stanley Unsurprised by Li Auto (LI.US)'s Price Cut, Finds it Timely Move to Boost Sales Outlook
Morgan Stanley reduced the 2023E net loss for XPENG-W (09868.HK)  -0.650 (-2.281%)    Short selling $87.97M; Ratio 27.648%   by 35% and the 2024E EPS by 16%. The target price for the stock was hiked from $43 to $48, with its rating kept at Overweight. The 2023E net loss for LI AUTO-W (02015.HK)  -3.050 (-3.159%)    Short selling $149.92M; Ratio 12.127%   was reduced by 31%, and the 2024E EPS was ramped up by 41%. The rating for LI AUTO-W was kept at Overweight, with its target price raised from $91 to $110. The 2023-24E earnings for BYD COMPANY (01211.HK)  +2.600 (+1.292%)    Short selling $329.85M; Ratio 33.848%   , meanwhile, were tweaked by -2% and +2%, respectively. The target price for the stock was slashed from $220 to $215, with its rating maintained at Hold.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-04-25 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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