XPEV - XPeng stock slides after Tesla price cuts BofA downgrade

Bank of America lowered its rating on XPeng ( NYSE: XPEV ) to Neutral from Buy on Friday with the new price cuts from Tesla on the Model 3 and Model Y a key factor.

Analyst Ming Hsun Lee noted the XPeng ( XPEV ) P7 shares similar pricing and brand positioning with the Model 3.

While the firm still likes XPEV's early mover advantage in autonomous development and expect its robust new model pipeline to improve volume sales growth, sales growth is expected to be offset by margin pressure in the first half of the year and valuation is called fair at the current level.

BofA's price objective of $12.40 implies only sideways action for XPEV in the near term.

Shares of XPEV were down 15.80% at 11:10 a.m. and traded below $10 earlier in the session.

Sector watch: Tesla rattles electric vehicle sector with more price cuts in China.

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