Among all the new energy companies, I believe Xpeng is a relatively safe choice. The reason is simple: Xpeng is still operating at a loss but has learned how to replicate popular products. As long as sales continue to rise and it moves toward profitability, there’s a compelling story for its stock price. In contrast, I'm very cautious about other profitable new energy brands. Once they start making profits, the market will price them based on their P/E ratios, and the intense competition in the domestic new energy sector can quickly erode those profits. Li $Li Auto(LI)$ serves as a warning in this regard, and I feel $Seres Group Co.,Ltd.(601127)$ is heading down a similar path. Perhaps the day Xpeng achieves substantial profitability will be the day I decide to sell my shares.
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