XPeng is an EV-focused player in the Chinese market with very good long-term growth prospects.
Q2 2022 provided decent numbers, but guidance related to Q3 is weak again due to several headwinds from external factors.
Its valuation is quite low, and upside potential is quite large over the medium term, if management can execute on its growth plan.
XPeng's stock has lost more than 50% of its market value this year and has yet to stage a recovery despite consistent fundamental outperformance against its Chinese EV peers.
The stock has been diverging from its Chinese EV peer group in recent months, extending a gradual downtrend while others are staging a modest rally on improving industry sentiment.
XPeng's upcoming 2Q22 earnings call is expected to be a key determinant on whether the divergence continues.
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