Xpeng Shares Shoot Up 11% In Hong Kong As July Deliveries Rise 228%: What You Need To Know

Benzinga2021-08-02

U.S.-listed Chinese electric vehicle makerXpeng IncXPEV 6.59%on Monday reported a jump in monthly deliveries as strong demand for the company's electric sports sedan P7 from China's young buyers lifted sales.

What Happened:The Guangzhou-based electric vehicle maker, which recently got aHong Konglisting said it delivered 8,040 vehicles in China, a jump of 228% year-over-year and a rise of 22% over last month's numbers.

Xpeng currently has two models on sale and the bulk of the deliveries came from P7 at 6,054 units, while G3, the company’s compact electric sports utility vehicle, contributed the rest of the deliveries at 1,986 units.

Xpeng said China’s younger, internet-savvy generation was the main driving force behind the growing sales of P7 — a model that was launched just a year ago.

The EV maker's year-to-date deliveries stand at 38,778.

Why It Matters: Xpeng is ramping up its portfolio and has given its first G3 model, which was launched in China at the end of 2018, a design update. The G3 SUVs mid-phase facelift version will begin deliveries in September.

The EV maker has also started accepting pre-order bookings for its upcoming sedan, the P5, which is priced significantly lower thanTesla Inc’sTSLA 1.45%Model 3 electric fastback midsize four-door sedan in China.

P5, the company's third production model, is priced in the range of RMB 160,000 – RMB 230,000 ($24,751 to $35,578) after subsidies.

Tesla’s Model 3 can now be booked at RMB 235,900 ($36,517) after last week’s price cut and delivery is expected in four to six weeks.

RivalLi Auto IncLI 8.9%, which currently has just one model on sale, reported a 251.3% jump to 8,589 deliveries for the month of July on Sunday.Nio IncNIO 4.77%is scheduled to report the latest delivery numbers later on Monday.

Chinese electric vehicle makers are scaling up competition at home as well as preparing for overseas expansion. Competition is set to intensify further as automakers unveil a fuller portfolio and compete with bigger rivals such as Tesla andVolkswagen AGVWAGY 1.38%at both home and abroad.

Price Action:Xpeng shares closed 6.38% higher at $40.38 on Friday in New York. The shares traded 11% higher in Hong Kong on Monday after it reported the delivery numbers.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Leave a comment
6