Several electric-vehicle makers, including Chinese EV startup XPeng (XPEV), accelerated in 2020 as total EV sales in China surpassed 1 million for the year. XPeng stock had a breakout year, rising more than 100% through December after a multibillion-dollar debut on the NYSE in August. The stock had a rough first half of 2021, but shares improved in the latter half of the year.
However, shares have struggled in 2022 as the market turns away from growth stocks like XPeng.
Over the long haul, the future looks optimistic for EV makers. Analysts are bullish about both China EV sales and global EV sales. GlobalData estimates EV sales in China to slow down relatively in 2022 when compared to 2021. Nonetheless, they estimate growth of 57% year-over-year to reach a volume sale of 7.2 million units. Should investors consider buying XPeng stock?
Currently, the stock market is in an uptrend, which means it's best to proceed with new buys and protect your assets as much as possible. But investors should still be identifying top watchlist stocks for when the uptrend does resume.
Outlook For XPeng, EV Stocks
Several new EV stocks emerged in the wake of leader Tesla (TSLA), including Nikola (NKLA), Workhorse Group (WKHS) and Hyliion (HYLN), as well as XPeng and China EV startup peer Nio (NIO). Additionally, several legacy automakers have transitioned to focusing on hybrid-electric vehicles, including General Motors (GM), Ford(F) and Ferrari (RACE).
As the competition heats up, XPeng has been expanding operations to fend off Tesla and other major players in the EV market.
In 2020, the company more than doubled its volume of vehicles delivered versus 2019, to 27,041. The firm also recently introduced a sedan model in hopes it'll be a significant driver of sales growth.
After its launch in early 2020, XPeng's P7 sports sedan quickly reached a total of 20,000 deliveries and surpassed the G3 compact SUV as the firm's most popular vehicle. This was a major milestone for XPeng because it became the fastest vehicle to reach 20,000 deliveries of any Chinese EV startup.
XPeng's Annual Tech Day News
On Oct. 24, XPeng held its annual its annual Tech Day event at its headquarters in Guangzhou. The company unveiled future plans for smart mobility, including XPeng's latest generation of flying car made by its affiliate HT Aero, plans for improving its energy replenishment system, and the company's vision for autonomous driving.
XPeng Chairman and CEO He Xiaopeng said the company aims to have the flying car in mass production by 2024. More importantly, XPeng aims to price the vehicle under RMB 1 million ($157,000).
The company says its mission is make the joy of flying accessible to anyone who can drive through flight control algorithm assistance, intelligent assisted driving, and steering wheel-independent operation.
As for the future of its energy replenishment systems, XPeng hopes to introduce China's first mass-produced 800V high-voltage SiC platform. The company's next-generation X-Power supercharger will be able to support "refueling" vehicles with up to 200km of range in 5 minutes.
Finally, XPeng announced details on its XPILOT 4.0 system and said its newest cars will be equipped with the system. XPeng's new model, a flagship SUV on the same platform as the P7, might be named the G7. The car is slated to debut at next month's Guangzhou Auto Show, according to several local media outlets.
XPeng Technical Analysis
Shares of XPeng traded flat on Mar. 28 after the firm reported its most recent Q4 earnings. The stock closed slightly higher and has also drifted higher since then. Shares became briefly extended from a 48.08buy pointfrom a long consolidation, but the breakout failed shortly thereafter.
The stock has since fallen below support at its 50-day and 21-day lines, indicating it does not hold great support from key institutional players.
XPeng stock formed an IPO base shortly after it debuted in August 2020. From there, the stock had a successful breakout from a 25.10 buy point.
Shares soared past 74 until they peaked in Nov. of last year. Then the stock lost much of its market value before bottoming at roughly 23 on May 13.
As of now, there is no promising buy point set-ups within the stock.
XPEV Stock By The Numbers And Ratings
XPeng reported earnings on Mar. 28, which showed higher sales and earnings than analysts' expected, but its guidance for deliveries of vehicles for the first quarter was slightly disappointing.
Wall Street expected XPeng to lose 19 cents a share. The EV maker reported an adjusted loss of 11 cents a share, beating estimates. Sales leapt to $1.34 billion in sales, representing year-over-year growth of 187%.
XPeng said it expects to deliver about 33,750 vehicles in the first quarter, which implies deliveries of 14,000 to 15,000 vehicles in March. The firm delivered roughly 19,100 vehicles in the first two months of 2022.
On Nov. 19, Xpeng revealed its new G9 flagship smart SUV. This is Xpeng's fourth production model.
In August, the firm announced a manufacturing expansion in China as it prepares for "increasing consumer demand for its smart EVs." Also, the company announced its first shipment of its flagship P7 sedan to Norway — the start of a committed push for international markets.
XPeng noted strong appeal with China's young, tech-savvy car buyers who are excited about the vehicles advanced assisted-driving features. The EV maker says the hotly anticipated smaller and more affordable version of the P7, called the P5, will be available in both China and Norway when it arrives.
A smaller and more affordable version of the P7, called the P5, will offer new, highly autonomous driving features. That hotly anticipated electric vehicle will be available in both China and Norway when it arrives, XPeng says.
Is XPeng Stock A Buy?
XPeng stock should not be bought right now. The IPO stock is showing excellent revenue growth but no earnings. This would still qualify the stock as buyable but shares are not in the position technically to support initiating a position. Wait for the stock to set up in a new base.
XPeng stock still has a lot of volatility to contend with as it seeks stable growth. For conservative investors, XPeng stock is not one to be added to your portfolio right now. However, the Chinese EV maker is one to add to your watchlist in the meantime.
Source: IBD
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