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Shares of XPeng Inc.

sank 7.5% toward a record low in afternoon trading Friday, after Citi Research analyst Jeff Chung swung to bearish from bullish on the China-based electric vehicle maker, citing expectations the company’s model cycle will face “serious challenges” in 2023. The stock has dropped 16.2% this week, and has plummeted 72.1% amid an 11-week losing streak. Chung double downgraded the stock to sell, after being at buy for at least the past two years. He slashed his stock price target to $3.18, which implies about 53% downside from current levels, from $27.87. He lowered his sales estimates for 2022 and the next two years, because of a “non-competitive pricing strategy” for the P5 and G3i models, and “stiffer competition from peers.” The stock has lost 86.5% year to date, while shares of fellow China-based EV rivals Nio Inc.

have shed 69.6% and Li Auto Inc.

have slid 56.2%. In comparison, the iShares China Large-Cap ETF

has lost 41.2% this year and the S&P 500

has declined 18.1%.

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