XPeng: The Intense Price Wars May Lead To Compressed Margins

cheeryx
2023-04-11

Some people ask why the price increase, saying there are no good news to explain and justify that.

I think the explanation is simply that the share price in the last few months has been far too low.

All of Xpeng's financial ratios were well below other, similar, companies.

In other words, the market has been way too pessimistic about the company and now it is taking a more objective / rational view.

Consequently the share price has been rising. In my opinion it will keep rising, because it still does not yet reflect a fair valuation of the company.

If I were to pick a number, I would say USD21 per share may be the target price in the medium term. $XPeng Inc.(XPEV)$

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