Shares in Chinese electric-vehicle maker XPeng fell Friday as investor sentiment soured after the stock was downgraded by a major brokerage.
Shares were recently 5.7% lower at 54.30 Hong Kong dollars (US$6.94).
The selloff came after Bocom International downgraded the stock to sell from neutral, saying that market expectations for sales of XPeng’s new G6 model are likely “too rosy.”
The brokerage’s analysts questioned whether the new EV model will be able to reach the 10,000 monthly unit sales expected by the company and the market.
“We believe the G6 is likely to come close to this level during sales and production ramp-up, but steady-state monthly sales are likely to be only 5,000-6,000 units, mainly due to fierce competition and potential price cuts from [competitors],” the analysts said in a Thursday note.
They also highlighted other concerns, such as XPeng’s high valuations and continued margin pressure.