XPeng’s $31 Billion Gap Shows Hazy China EV Outlook

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XPeng's stock is likely to face further swings after the European Union’s move to fight back against Chinese EV imports through potential tariffs. Photo: Bloomberg

(Bloomberg) — The biggest debate for sell-side analysts covering Chinese equities these days centers around a $31 billion question: What is the outlook for XPeng Inc.? The divide is sending shares on quite a roller-coaster ride.

The Chinese electric-vehicle (EV) maker has one of the widest price target gaps among members of the MSCI China Index, according to Bloomberg-compiled data, with analysts forecasting the stock could surge to HK$196 ($25) — or slump to HK$18 — over the next 12 months. That’s a gain of 169% or decline of 75% as of the stock’s Friday close. Between June and July, the shares surged nearly 180% before falling 30% over the next three weeks.