Morgan Stanley Assesses XPeng’s Outlook Amid Market Correction

XPeng faces market correction as onshore investors reduce positions

XPeng, a Chinese electric vehicle (EV) manufacturer, experienced an 8% decline in its H-shares on Monday, compared to the Hang Seng Index’s 2% drop. Analysts at Morgan Stanley believe that this downturn can be attributed to onshore investors reducing their positions in the company. These investors had been actively purchasing XPeng in the latter half of 2023 due to its significant advancements in autonomous driving technology. However, recent short-term events such as the XNGP upgrade and X9 launch had already resulted in a minor surge in XPeng’s stock price at the end of December.