XPEV NIO CHPT - Top 3 EVs Must Buy in Q4 2023.
In a twisted sense, I am glad that September 2023 is officially over. Quite certain it has been a “bad” month for most investor.
Like the adage “Out with the old and In with the new”, I am looking forward to see what October has in store for all of us.
Firing off the first salvo was this headline that greeted me this morning (see below).
With a diminishing attention to all things artificial intelligence (AI), it is time to perhaps, ride the electrification trend again?
The electric vehicle (EV) category is positioned to grow quickly in the years to come.
EV sales are projected to account for +18% of total auto sales in 2025.
By end of the decade, EV total sales is estimated to increase to 60%.
As such, this offers substantial growth potential and value creation for market leaders.
Of late, Chinese EV stocks are rising as reports suggest regulators might ease restrictions on foreign investors’ stakes in publicly traded Chinese companies.
This could attract new funding and help the country’s post-pandemic recovery, benefiting companies amid economic challenges.
Most EV stocks uphold a high valuation due to future growth expectations. This is exactly what Wall Street analysts look for when evaluating a stock.
The Top 3 EV stocks to buy heading into Q4 2023 will be:
Chinese electric vehicle maker $XPeng Inc.(XPEV)$ has introduced its 2024 P5 sedan.
Available in two trims, P5 500 Plus (US$21,480) and P5 500 Pro (US$23,944) respectively; less LiDAR technology.
Additionally, the P5 500 Pro edition will be equipped with $NVIDIA Corp(NVDA)$ Xavier smart driving chip — enabling highway Navigation Guided Pilot (NGP) functionality.
With Xpeng joining forces with $Volkswagen AG(VWAGY)$ and its expansion plans into Europe (Germany, Britain, France) in 2024 (see above).
Their autonomous tech could thrive in Europe.
Also its partnership with Didi (OTCMKTS:DIDIY) may boost China’s robo-taxi business.
With a low forward price-sales (P/S) ratio, XPEV is a solid buy.
$NIO Inc.(NIO)$ stands out among its EV peers as the leading Premium EV.
With its with Battery as a Service (BaaS) business model, as well as plans to expand its charging stations (current installation of 1,747) for total customer experience.
Positioning itself as a lifestyle brand, NIO has ventured into smartphones, enhancing connectivity between a customer and his NIO EV.
Its vision is set on a 2025 mass-market brand launch, specializing in high-end SUVs, competing with other luxury brands.
With its electric SUVs priced between US$50,000 and US$70,000, it competes with luxury brands like BMW and Mercedes with the advantage that it takes minutes to get the EV’s battery replaced instead of time-expended charging.
The “dull” spot for NIO is perhaps its Q2 2023 unaudited financial results with vehicle deliveries totaling 23,520, down -6.1% YOY.
$ChargePoint Holdings Inc.(CHPT)$ is an EV charging equipment company, plays a crucial role in global EV success.
In Q2 2023, it achieved $150.5 Million in revenue, up +39% YOY.
It expects to close off this year in the range of $605-630 Million in revenue.
Growing subscription revenue, driven by expanding charging stations, is a positive indicator for future growth.
At ChargePoint, all investors should focus on subscription revenue growth.
ChargePoint generates revenue from [a] charging system sales and [b] software subscriptions.
ChargePoint, has >200,000+ charging ports, surpasses Tesla in international reach.
Trading just under $5 per share (as of 29 Sep closing price), it is down -43% year to date (YTD).
ChargePoint seems undervalued, if you asked me.
As said, with a growing trend in electric car adoption, ChargePoint’s prospects could brighten with increasing demand for charging services, just like that.
How I See It:
No doubt that EV is the future for the automotive industry.
It is also a vital alternative away from fossil fuel that could be channeled for more pertinent uses.
As the EV car owner population grows, the value that BaaS brings will be obvious. Average downtime required to replace a battery will significantly be less than queueing to charge up one’s battery.
The swap-advantage will be especially pronounced during [a] eve of public holidays, [b] cross state road trip, [c] cross countries road trips etc…
Haven’t highlight the [a] economic costs, and [b] security costs of not replacing an old battery pack for self-charging EVs.
Do you think Chinese EV makers have a stake in the EV automotive industry?
Do you think NIO’s Battery as a Service is the “better” approach when it comes to battery charging?
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Xpev is solving production bottleneck with vendor supplies and continued to ramp up productions. That will turn the big order book into productions and deliveries, then top line revenue growth will keep expanding. great future outlook.
It's going to be a good Green day.
old news, and already priced in. xpev suffered major drops before, li didn't due to these numbers. which is great, given nice discount and stronger growth potential for xpev.
Great ariticle, would you like to share it?
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If Xpeng shows a profit next year, do we go $100 per share?