Daiwa analyst Kelvin Lau initiated coverage of Xpeng with a Sell rating and $32 price target. Lau expects Xpeng to turn profitable in 2023, but notes its share price has rallied by about 135% since the beginning of November, which has caused the stock to “deviate from its true value.” He believes 2021 will see competition in China’s NEV market intensify and he sees Xpeng “lacking a competitive edge,” Lau tells investors.