Fans of XPeng (NYSE:XPEV) stock, rejoice! The Chinese automaker announced at its joint Cheche Technology and Shanghai Insurance Exchange summit earlier this month that its new G6 electric crossover SUV will reach every store in China by the end of the week. The company revealed its plans to announce pricing and delivery details at the end of June, but based on its current trajectory, expect an exciting turnout from the Chinese automaker.
At the summit in China earlier this month, the company presented a number of new products set to release in the second half of the year. This includes the updated G6, a new 7-seat X9 model, a cheaper G9 with enhanced specs, and a more affordable P7i with a 500 km range attributed to new LFP batteries.
Despite the promising barrage of vehicles, XPEV stock has only seen red for the past few days. XPEV is down more than 3% over the past five days, contributing to a 21% drop over just the past month. As of this afternoon, XPEV stock has just managed to eke out a tiny bit of green on its price chart at 0.1%.
Will XPeng’s new cheaper-better strategy be enough to get investors back to the table?
XPEV Stock Sinks on New EV Models
One of the keystones of XPeng’s summit was a reorientation towards selling cheaper, more feature-rich vehicles. Indeed, the company’s updated model types are each equipped with autonomous driving features and more spacious cabins, all while maintaining equivalent price points.
That isn’t to say the company hasn’t sparked some controversy with its new models, however.
Interestingly, some have speculated XPeng’s new X9 model may invoke legal pressure from fellow automaker BMW (OTCMKTS:BMWYY). The name “X9” sounds notably similar to BMW’s iX9 model, which BMW owns the rights to. In fact, BMW has an entire line of “X” crossovers, ranging from the X2 model all the way down to its flagship BMW X8. The lawsuit wouldn’t be without precedent, either.
If you recall, just last year Audi won a legal battle against Chinese EV maker Nio for copying Audi’s S6 and S8 performance sedans with its own ES6 and ES8 model names. The German car maker could pursue XPeng for a breach of copyright should the company feel compelled to enter a legal dogfight.
Either way, investors are clearly adopting a “wait and see” attitude towards the Chinese automaker for the time being. Whether the company’s latest models and strategies will be enough to lift XPEV stock remains to be seen.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.