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Since Xpeng’s Initial Public Offering, there have been more ups than downs for the EV manufacturer. As of now, it looks like XPeng and Nio are leading the charge in the Chinese EV market. The fact of the matter is that EV stocks are more unpredictable than investors realize.
When it comes to Chinese electric vehicle stocks, XPeng continues its lead and surprise investors. Although the market conditions in the Chinese EV sector are highly volatile, EV manufacturers like XPeng continue to reach new heights.
The focus of this article revolves around the recent stock price analysis of XPeng and touches on the projected analysis of XPeng stock:
XPeng Statistical Overview
XPeng (XPEV) Stock Forecast 2023
XPeng, at its core, develops, designs, and manufactures smart EVs in China. The company offers sports sedans and SUVs with a unique and personalized touch. XPeng investors remain optimistic that the company will bounce back from its struggles in 2022 and continue driving growth into 2023
XPeng Inc. recently announced that its wholly-owned subsidiary, Guangzhou Xiaopeng Automotive Financial Leasing Co., Ltd., had completed its first-ever issuance of RMB964 million (approximately US$133.5 million) in carbon-neutral asset-backed securities (“ABS”) for automobile leasing on the Shanghai Stock Exchange.
This is to further expand its direct funding channels on the two major exchanges in China, XPENG issued its second ABS in its home capital market, after its maiden ABS issuance on the Shenzhen Stock Exchange in March.
Analysts expect Xpeng shares to build momentum in 2023 and hit $19 in the first half of the year.
XPeng (XPEV) Stock 2022
Unlike major automakers, XPeng offers supercharging, maintenance services, custom ride-hailing, and sales contracts. As of December 2022, the closing XPeng stock price is expected to be at $13.24.
The combination of services offered by XPeng is one of the main reasons it continues to garner more attraction in the Chinese EV market. Chinese EV stocks have had multiple headwinds but what is interesting is that like Nio’s stock, XPeng has also been able to regain its stock strength and value in the market.
With swift and sharp stock correction, XPeng has been able to instill a robust market position. In China, the revolution of electric vehicles is at its peak.
More stock corrections in the EV market serve as an opportunity for XPeng to increase the exposure of its stock. Although stock prices of XPeng have short-term drags, the long-term future outlook of electric vehicles looks robust. Investors should be aware of the fact that XPeng falls on the bullish trend and has the potential to drive healthy and sustainable growth in the next three years.
The initial XPeng price was $50.33 in 2022. XPeng’s price dropped by -80% from the January, trading at $10.31 as of December 13, 2022). Typically, two major reasons managed to impact the recent pullback of XPeng’s stock. The first reason revolves around the fact that the EV sector is facing a global chip shortage. Another reason involves the resurgence of COVID-19 in China that has managed to create serious supply chain problems for XPeng and other EV manufacturers.
Unlike the US and Europe, Chinese EV stocks like XPeng are under constant surveillance. Most recently, XPeng stock almost faced potential delisting in case of non-compliance with Chinese regulatory authorities. But market analysts believe that there is no genuine reason for XPeng to overreact. And that’s because the electric vehicles market has become a much broad market in China.
Ultimately, this means that even if there is a downward stock decline in the Chinese EV market, XPeng will have plenty of opportunities to regain its stock strength and drive long-term growth. But in some cases, the vague and sudden ambitious drive also contributes to the decline of XPeng’s stock in the market.
On May 03, 2022, Guangzhou Xiaopeng Motors Technology Co Ltd, (XPEV) managed to close the stock trading at $25.62, which was up by 0.91% from the last trading session. But this change was outperformed by a $0.48% increase in the S&P 500 on the same day.
Similarly, XPeng managed to gain an increase of 0.2% on DOW, whereas, tech-savvy indexes like NASDAQ closed XPeng’s stock at 0.43% higher. As the stumbling variations in the EV market became a new norm on May 9, 2022, XPeng lost 19.14% of its stock value.
The share price of XPeng was quite low in 2022 and decreased by more than 80% from the year’s beginning, similar to many growing enterprises and EV start-ups.
This reflects not just the year’s problems to increase deliveries because of supply-chain issues and COVID-related constraints in China, but also the broader market sluggishness and investors’ unfavorable attitudes about unprofitable growing enterprises.
With the introduction of the upgraded G3i model and the G9 model, XPeng significantly increased the competitiveness of its product line. This model features a dedicated semi-autonomous XPILOT driving system along with Lidar technology. After this launch, investors can expect the market position and stock value of XPeng to increase by December 29, 2023.
On May 12, Chinese listed EV stocks closed at a higher rate with XPeng gaining 6.99%. Throughout Q1 222, XPeng reports strong and consistent growth in delivering electric vehicles. In fact, within the first quarter of 2022, the growth of deliveries was increased by 159% for XPeng.
Indeed, XPeng’s value decreased from almost 40x anticipated revenues at the end of the year to only 3.3x revenue in December, indicating that its share price downturn was fairly severe and that XPeng is presently selling at very low multiples.
XPeng (XPEV) Stock 2021
In 2021, XPeng reported almost 100,000 deliveries of electric vehicles. This pace of vehicle deliveries shows an annual surge of 263% for XPeng. This, in turn, increased XPeng’s stock price by 1.9% on April 9, 2021. On August 24, 2021, XPeng made it clear that it will continue to increase its production capacity at Zhaoqing manufacturing. This involves annual production of over 200,000 at this manufacturing facility.
As the production capacity in Wuhan and Guangzhou factories increased to the production of more than 400,000 vehicles, XPeng is now considering acquiring other facilities to further boost the production. Throughout 2021, XPeng’s stock was well-positioned, and some incremental ups and downs.
The strategy of XPeng to ensure the consistent roll out of upgraded or new models supports its long-term goals to boost revenue generation, and profit margins, and increase stock price in the market. After the large-scale delivery of XPeng’s Sedan P5 started on October 14, 2021, XPEV started to gain momentum with a 2.3% increase in the value.
On top of a robust financial profile, XPeng strongly emphasizes innovation. As the competition in the EV sector increases, innovation has become quintessential to standing out in the market. For instance, the G9 model of XPeng features semi-autonomous driving and Lidar technology.
On October 04, 2021, XPeng affiliate, HT Aero, also highlights that the company hopes to launch flying cars by the end of 2024. XPeng also plans to make these flying cars functional on roads and rise above the intense market competition altogether.
XPeng (XPEV) Stock 2020
In late July 2020, XPeng went public but it may not have been a perfect time for the company. After all, 2020 will always be synonymous with the pandemic crisis. In the EV sector, COVID-19 managed to create long-term and complex supply chain issues. In fact, by the end of August 30, 2020, XPeng had already lost half of its stock value.
In 2023, the risk-off stock environment spiraled out of control. At the same time, XPeng had to deal with macroeconomic risks and mountainous regulatory requirements. After losing 50% of its stock value in the market, the interest and trust of investors to hold onto their XPeng shares was hanging by a thread.
The ship shortage also creates cost pressures and downgraded the value of XPeng’s stock in the market. Throughout 2020, expected deliveries of XPeng were largely overshadowed. In fact, the company’s April reported earnings showed a significant decline in the volume of deliveries and reduced quarterly performance.
But investors understood that after the pandemic crisis, XPeng has the resources and potential to regain and improve its stock value. In October 2020, the stock price of XPeng plummeted to 6%. Remember that Hang Send Index, Shanghai Index, and Nikkei Index saw a decline of 3%, 2.5%, and 2% amidst the COVID-19 crisis. After 2020, XPeng realized it would need a new approach to exceed market expectations, fulfill a high volume of vehicle deliveries, and increase stock price in the market.
Conclusion
XPeng has a solid cash flow and possesses more than enough financial resources to increase its entire operational capacity. In fact, XPeng has the expertise and resources to make more aggressive research and development investments and roll out a more innovative line of models in the market.
For instance, if XPeng manages to make EV deliveries in central Europe, then there is a good chance the company may opt for local manufacturing. In retrospect, investing in EV stocks come with long-term benefits for investors. With international and regional expansion plans, XPeng stock is bound to increase its value in the coming years.
The objective of XPeng is to further strengthen its market position, navigate local market complexities, and handle close competition to gain significant market share.
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