Starting at 219,800! XPeng's new P7 is "more aggressive than expected," Morgan Stanley: "exceeds expectations"

True fragrance warning, the all-new XPeng P7 makes a stunning debut, priced from 219,800 yuan.

On the evening of August 27, the all-new XPeng P7 was officially launched, with this ultra-luxury AI coupe priced from 219,800 yuan, directly breaking through the psychological barrier of 250,000 yuan for smart coupes.

According to news from the Chasing Wind Trading Platform, on August 27, Morgan Stanley's research report pointed out that the pricing of the new XPeng P7 is more aggressive than the market's previous expectation of 230,000 to 250,000 yuan. This pricing strategy makes the new P7 26,000 yuan lower than its competitor, the Xiaomi SU7 Pro.

XPeng's management revealed that the order volume for the new P7 has exceeded that of all existing models. Morgan Stanley expects the new P7 to become a "dark horse" driving XPeng to achieve record sales. Supported by economies of scale, the new P7 is still expected to achieve double-digit profit margins.

"Above Expectations" Pricing Strategy

Morgan Stanley's report first emphasized the "offensive" nature of the new P7's pricing.

XPeng officially announced four versions of the new P7, with a price range of 219,800 to 301,800 yuan. Its starting price of 219,800 yuan is significantly lower than the market's previous general expectation of 230,000 to 250,000 yuan.

The report highlights the competitive pricing advantage of the P7:

• Compared to the Xiaomi SU7 Pro: The new P7's starting price is 26,000 yuan lower.

• Compared to the Tesla Model 3: The new P7's starting price is 16,000 yuan lower.

This "more aggressive than expected" pricing undoubtedly puts pressure on core competitors in the same price range in the fiercely competitive Chinese electric vehicle market.

Despite such competitive pricing, Morgan Stanley still expects the new P7 to contribute "double-digit profit margins" after achieving scaled production, based on its analysis of XPeng's cost control.

Standard Configuration is High Configuration

The report points out that the aggressive pricing of the new XPeng P7 has not come at the expense of core product strength.

The new P7 achieves "standard configuration is high configuration," with all models equipped with:

• 800V/5C ultra-fast charging technology

• AR-HUD (augmented reality head-up display)

• Three AI Turing intelligent driving chips (with a total computing power of up to 2250 TOPS)

• An intelligent driving system that supports VLA (visual-language-action)

In addition, compared to the old P7i, the new car has improvements in interior space and exterior design. Morgan Stanley believes that, combined with its highly competitive price, it has laid a solid product foundation for attracting consumers.

New P7 May Become a Sales "Dark Horse"

The report points out that the new P7 "may become a dark horse," with sales expectations significantly leaning towards optimism. This judgment is based on two key pieces of information:

• Hot Pre-orders: XPeng's management has clearly stated that the order volume for the new P7 "exceeds all existing models."

• Delivery Advantage: The report notes that "large-scale delivery has already started" for the new P7. This means XPeng can leverage its delivery speed advantage to capture market share from competitors with longer wait times. **

Based on the above factors, Morgan Stanley believes that the previous forecast of monthly sales of 3,000 to 5,000 units now seems to be a "very low standard," and the likelihood of actual sales exceeding this range is very high.

The "sales growth" brought by the new P7 will be an important guarantee for XPeng to achieve its two key short-term goals:

• September sales target: Aim for 40,000 units in monthly sales (compared to 36,700 units in July).

• Fourth quarter performance: Achieve record quarterly sales levels.

However, Morgan Stanley also pointed out that all of this requires support from production capacity. This means that in the coming months, the ramp-up of production capacity and delivery volume for the new P7 will be key to verifying whether it can achieve "simultaneous growth in volume and price."