Once heralded as a titan among the new energy vehicle makers in China, Xpeng Motors now finds itself grappling with the challenges of a fragile stock performance, reflecting a turbulent year for the companyAs of November 1, 2023, Xpeng's stock has plummeted by a staggering 87.26% since the beginning of the year, marking a substantial loss in total market value, shedding over $38.5 billion—an amount equivalent to around 280 billion yuan.

This downturn has placed Xpeng at the forefront of investor concern, especially when compared to other notable competitors in the market, such as NIO and Li Auto, which have seen their stocks decline by 69.35% and 54.64% respectivelyNotably, Xpeng's decline is highly pronounced, posing questions about the company’s sustainability and future prospects in a fiercely competitive landscape.

Market sentiment surrounding Xpeng Motors has been heavily influenced by several critical factors, primarily stemming from disappointing sales figures and a failure to meet annual targetsWith a clear dip in vehicle deliveries, coupled with a worrisome financial performance, investors are beginning to reconsider their strategies towards the electric vehicle manufacturer.

Recently, renowned financial institutions have taken contrasting views on XpengCitigroup has taken a notably bearish stance, drastically revising its target price on Xpeng’s US stock from $27.87 down to a mere $3.18, indicating nearly a 50% potential price drop based on the most recent closing price of $6.41. This implies a disastrous outlook for the company, at least in the eyes of Citigroup's analysts, who now rate it as a “Sell”.

Meanwhile, J.PMorgan exhibits a decidedly different perspectiveRather than disinvesting in Xpeng, the American giant has opted to increase its holdings, accumulating an investment exceeding 1 billion Hong Kong dollars (about $128 million) in the company's Hong Kong sharesThis contrasting position exemplifies the divergent opinions that currently exist about the future of Xpeng.

The palpable divisions among financial analysts and institutions underscore a broader uncertainty in the market

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While bearish analysts are unloading shares—one notable action being Citigroup's recent sale of 563,700 shares—they also face significant competition for their bearish outlook, most notably from long-term investors like J.PMorgan who remain optimistic about the company’s prospects.

Xpeng's difficulties are compounded by internal challengesThe company’s sales figures have been rather bleak, particularly when compared to its performance in prior yearsDuring the initial half of 2022, Xpeng was celebrated as the leader among China's new electric vehicle makers; however, its afterburners seem to have cooled considerably in the second halfThe company’s monthly sales numbers exhibited a stark decline, dropping from 11,524 units in July to just 5,101 in October—a dramatic reduction.

As of October 2022, Xpeng had sold a cumulative total of 103,654 vehicles, a figure strikingly short of its ambitious annual target of 250,000 units, achieving only about 41.46% of that goal with merely two months left in the yearObservers are left wondering if Xpeng can achieve a miraculous turnaround in November and December, though expectations appear bleak.

The setbacks experienced by Xpeng are troubling, particularly in light of consistent improvements in sales that were previously driven by the successful introduction of models like the P7. However, the recently launched G9 SUV, touted by CEO He Xiaopeng as potentially "the best SUV under 500,000 yuan," faced stiff criticism from consumers regarding its rollout and performanceThis misalignment between product release and consumer expectation has raised alarm bells regarding the company’s internal coherence across technical, marketing, and product domains.

In response to these events, He Xiaopeng issued an email to all employees announcing a comprehensive organizational restructuring meant to better address these operational gapsReports indicate that emotional appeals from He during internal meetings reflect the urgency and gravity of the company’s current situation.

From a financial standpoint, the first half of 2022 saw Xpeng report significant losses—44.02 billion yuan in net profit losses, which, when broken down, translates to a loss exceeding 63,000 yuan on each vehicle sold

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