Xiaopeng G7: Pricing Defies Expectations; Can Its L3-Level AI SUV Recreate the Blockbuster Success?

Dolphin Research Comments:$XPeng(XPEV.US) The G7 press conference officially announced the price of the G7, which comes in three versions, priced between 195,800 to 225,800 RMB.

1) XPeng G7 602 Long Range Max 195,800 RMB;

2) XPeng G7 702 Ultra Long Range Max 205,800 RMB;

3) XPeng G7 702 Ultra Long Range Ultra 225,800 RMB.

1. Pricing Exceeds Market Expectations:

Previously, during the G7 pre-sale, Dolphin Research mentioned that the pre-sale price of 235,800 RMB announced at the last XPeng G7 conference was too high. The actual performance during the pre-sale period was relatively average, with small orders exceeding 10,000 units in 46 minutes, leading to a 6.6% drop in Hong Kong stocks on the day. For details, see XPeng G7 Conference (Minutes): Is the Pre-sale Price of the 'Leader' G7 Too High?.

After the official launch, the starting price was reduced by 40,000 RMB compared to the pre-sale price, slightly exceeding the market's expectation of a starting price between 200,000 to 210,000 RMB for the XPeng G7.

2. Model Positioning Mainly Targets Family Users, Core Advantages Include Large Space + 800V Fast Charging + Intelligent Driving:

In the 190,000 to 250,000 RMB price range where the XPeng G7 is positioned, there are relatively few competitors. The main competitors are currently the Leopaard L60, ZEEKR 7X, and Avita 07 (with monthly sales of 6,281/4,651/3,440 units in May). It is clear that this car primarily targets family users, with core advantages over competitors in the same class being a lower starting price + larger space + intelligent driving advantages

a. Low Starting Price: The XPeng G7 is priced between 195,800 to 225,800 RMB, which is about 10,000 to 30,000 RMB lower than the starting prices of competitors in the same class.

b. Large Space: The XPeng G7 offers more space compared to models like the Leopaard L60 and ZEEKR 007.

c. Range + 800V Fast Charging: With an overall range of 602-700 km, although not extremely high, it is generally sufficient for family users, especially those primarily commuting in urban areas.

It is also equipped with 800V fast charging, and currently, XPeng's fast charging network covers 420 cities, with over 2,348 XPeng-owned stations, including 1,858 XPeng supercharging/ultra-fast charging stations, which is a decent scale.

d. Intelligent Driving: The G7, as emphasized at the press conference, is the world's first L3-level AI-powered car, and from the actual intelligent driving hardware and software configuration:

Hardware: The 195,800/205,800 RMB versions are equipped with dual NVIDIA Orin X chips, with a computing power of 508 TOPS, while the 225,800 RMB Ultra mainly features XPeng's self-developed Turing chip (with a computing power of 2,250 TOPS), which significantly outperforms competitors in the same class in terms of computing power. Therefore, the core focus is actually on the actual performance of the self-developed Turing chip.

Software: On the software side, XPeng has released the VLA+VLM large model, but this has not yet been implemented in the G7 at the time of delivery and is expected to be officially implemented by the end of this year, achieving near L3-level driving capabilities.

Specific Progress:

a. When the G7 first started delivery, it did not have full vehicle autonomous driving capabilities or automatic assisted driving capabilities.

b. In September of this year, we will push VLA to the vehicle via OTA, and it will also support related capabilities such as visualized display of thinking and reasoning.

c. In November of this year, both the hardware and software of our VLM will be installed on the vehicle for free.

d. In December of this year, the dual capabilities of XPeng's VLA and VLM will be launched.

3. Current Order Performance:

XPeng has currently only announced a large order volume of 10,000 units in 9 minutes, which is performing well (referencing the P7+ launch with 10,000 units in 12 minutes, and the M03 25 models with 12,500 units in 1 hour), but it is still necessary to pay attention to the subsequent order volume announcements for the G7 (such as the 24-hour large order volume).

4. Potential Impact of YU7 on XPeng:

The main price range for XPeng's SUV series is actually staggered with Xiaomi's YU7, with the SUV series focusing on the 150,000 to 250,000 RMB price range, while Xiaomi's YU7 targets the 250,000 to 330,000 RMB price range. In terms of model positioning, since the G7 focuses on large space, it is more suitable for family car groups, especially those primarily commuting in urban areas (all three versions of the G7 are single-motor configurations), while the YU7 is more inclined towards a sporty attribute, with relatively staggered model positioning.

Therefore, due to the staggered price range and target audience positioning, the potential impact of YU7 on the XPeng G7 is relatively small, and it may even absorb some of the overflow effect of YU7 orders (due to long waiting times).

5. How to View XPeng's Current Stock Price:

Currently, XPeng's stock price has factored in the delivery volume expectation of 430,000 to 440,000 units for 2025, equivalent to an average monthly sales of 39,000 units in the second half of the year, corresponding to a P/S multiple of about 1.6 times for 2025. Although the overall valuation is not high, whether XPeng's stock price can continue to rise significantly still depends on whether it can create the next blockbuster model besides the two sedans Mona M03 and P7+ (such as whether the sales leader G7 can maintain a stable monthly sales level of 8,000 to 10,000 units, so it is currently necessary to closely monitor the subsequent order volume situation of the G7).

Specific Information from the Conference:

1. Pricing

1) XPeng G7 602 Long Range Max 195,800 RMB

2) XPeng G7 702 Ultra Long Range Max 205,800 RMB

3) XPeng G7 702 Ultra Long Range Ultra 225,800 RMB

2. G7 Configuration

a. World's first launch of three Turing AI chips, with effective computing power reaching 2,250 TOPS

b. VLA+VLM large model

When the G7 first started delivery, it did not have full vehicle autonomous driving capabilities or automatic assisted driving capabilities.

In September of this year, we will push VLA to the vehicle via OTA, and it will also support related capabilities such as visualized display of thinking and reasoning.

In November of this year, both the hardware and software of our VLM will be installed on the vehicle for free.

In December of this year, the dual capabilities of XPeng's VLA and VLM will be launched.

Taiji AI chassis - no dizziness on bumpy roads

c. 0-100 km/h acceleration in 6.5 seconds

d. Braking distance at 100 km/h is 35.8 meters

e. Maximum speed of 202 km/h

f. First equipped with Lingjing AI sound system, 20 custom Hi-Fi speakers + 7.1.4 panoramic surround sound

g. 800-volt high-voltage platform with 5C ultra-fast charging battery capability, and a range of over 700 km

3. Configuration Differences: Ultra VS. Max

Event: Place an order by midnight on July 31st —> Limited time offer of Nappa leather seats (worth 8,000 RMB)