What Does 2022 Hold For Xpeng Stock?

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expeng stock (NYSE: XPEV), a US-listed Chinese electric vehicle player, had a relatively mixed year. The stock has remained roughly flat through 2021, outperforming the broader S&P 500, which has gained about 30% over the same period, though it has outperformed NIO (down 47% this year) and Lee Auto (- 10% year-on-year) outperformed peers like -Date). Although, in general, Chinese stocks have had a rough year, Xpeng has actually performed very well on the operational front, due to increasing regulatory scrutiny and concerns about delisting of high-profile Chinese companies from US exchanges. In the first 11 months of the year, the company delivered a total of 82,155 vehicles, an increase of 285% over last year, driven by strong demand for its P7 smart sedans and the G3 and G3i SUVs. According to consensus estimates, revenues are expected to grow by over 250 percent this year, beating rivals Nio and Li Auto. Xpeng is also becoming more efficient in manufacturing its vehicles, with gross margin growing to about 14.4% in Q3 2021, up from 4.6% for the same period in 2020.

So what is the company’s outlook in 2022? While delivery growth will be slower than in 2021, we think Xpeng will continue to outpace its domestic rivals. Xpeng has been expanding its model portfolio, recently launching a new sedan called the P5, while also announcing the upcoming G9 SUV, which is likely to go on sale in 2022. Xpeng intends to drive its international expansion by entering markets including Sweden, Netherlands. and Denmark sometime in 2022, with the long-term goal of selling about half of its vehicles outside China. We also expect margins to accelerate further, driven by economies of scale. That being said, the outlook for Xpeng’s share price hasn’t been as clear. On-going concerns in Chinese markets and rising interest rates may impact the yields of the stock. Xpeng also trades at a higher multiple than its counterparts (about 12x 2021 revenue, compared to about 8x for Nio and Li Auto) and if investors move into more value names than growth stocks, it could weigh on the stock as well. could.

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View our analysis Nio, Xpeng and Li Auto: How Do Chinese EV Stocks Compare? For more on how XPEV stock stacks up compared to its peers, read on.

Below you’ll find our previous coverage of the Xpeng stock where you can track our outlook over time.

[11/21/2021] Xpeng is all set to launch a new electric SUV. Is the stock a buy?

Xpeng, one of the major US-listed Chinese electric vehicle players, saw its stock price rise 9% over the past week (five trading days), outperforming the broader S&P 500, which rallied just 1% over the same period. Raised. The gains came after the company indicated that it would unveil a new electric SUV at the Guangzhou Auto Show on November 19, which is likely to be a successor to its current G3 model. In addition, the blockbuster IPO of Rivian, an EV startup that generates no revenue, and yet is valued at over $120 billion, is also likely to attract interest to other more moderately priced EV names, including Xpeng. For perspective, Xpeng’s market cap is about $40 billion, or just a third of Rivian’s, and the company has already delivered a total of more than 100,000 cars.

So is Xpeng’s stock likely to rise further, or are gains less likely in the short term? Based on our machine learning analysis of historical stock price trends, XPEV stock has only a 36% chance of growth in the next month (twenty one trading days). View our analysis Xpeng stock likely to rise for more information. That said, the stock still looks attractive to long-term investors. While XPEV stock trades at 13x expected 2021 revenue, it should grow fairly quickly at this valuation. For perspective, sales are projected to increase by about 230% this year and up to 80% next year, according to consensus estimates. In comparison, Tesla which is growing more slowly is valued at about 21x 2021 revenue. Given the solid demand growth for EVs in the Chinese market and Xpeng’s growing advances with autonomous driving technology, Xpeng’s long-term growth may also hold. While the recent Chinese government crackdown on domestic technology companies remains a concern, Xpeng’s stock is down about 15% from its January 2021 highs, offering a reasonable entry point for investors.

Want to play the growth in the EV market without betting on individual OEMs? check out our theme Electric Vehicle Supplier Stock for more information.

[9/7/2021] August was tough for Nio and Xpeng, but the outlook looks bright

Three major US-listed Chinese electric vehicle players recently reported their August delivery figures. Li Auto led the trio for the second consecutive month, delivering a total of 9,433 units, up 9.8% from July, driven by strong demand for the Li-One SUV. Xpeng delivered a total of 7,214 vehicles in August 2021, a decline of almost 10% compared to the previous month. The gradual decline comes as the company transitioned production of its G3 SUV to the G3i, an updated version of the car that will go on sale in September. Nio was the worst performer among the three players, having delivered just 5,880 vehicles in August 2021, a drop of nearly 26% from July. While Nio consistently delivered more vehicles than Li and Xpeng through June, the company is clearly facing supply chain issues, linked to the ongoing automotive semiconductor shortage.

Though the August delivery numbers may have been mixed, the prospects for both Nio and Xpeng look positive. For example, Nio is likely to deliver around 9,000 vehicles in September, according to its updated guidance of delivering 22,500 to 23,500 vehicles for Q3. This will mark a jump of over 50% since August. Xpeng is also seeing monthly delivery volumes reach 15,000 in the fourth quarter, more than 2 times its current number, as it ramps up sales of the G3i and launches its new P5 sedan. Now, Lee Auto’s guidance for 25,000 and 26,000 deliveries in the third quarter points to a gradual decline in September. That said, we think it’s likely that the company’s numbers will come in ahead of guidance, given its recent momentum.

Want to play the growth in the EV market without betting on individual OEMs? check out our theme Electric Vehicle Supplier Stock for more information.

[8/3/2021] How did the major Chinese EV players fared in July?

Chinese electric vehicle players listed in the US provided an update on their delivery figures for July, with Li Auto leading the way, while NIO (NYSE:NIO), which consistently delivered more vehicles than Lee and Xpeng until June, fell to third place. Li Auto delivered a record 8,589 vehicles, an increase of about 11% over June, driven by a strong uptick for its refreshed Li-One EV. Xpeng also posted record deliveries of 8,040, up 22% compared to June, driven by strong sales of its P7 sedan. Amid lower sales for the company’s mid-range ES6s SUV and the EC6s coupe SUV, the Nio delivered 7,931 vehicles, a 2% drop over June, possibly facing strong competition from Tesla, which recently launched its flagship SUV. Prices have been slashed on the Model Y which competes directly with the Nio’s offerings.

While shares of all three companies rose on Monday after the delivery report, they underperformed the broader markets year-on-year due to a recent crackdown on China’s big-tech companies as well as a cyclical rotation of growth stocks. has done. stock. That said, we think the long-term outlook for the Chinese EV sector remains positive, as automotive semiconductor shortages, which previously hurt production, are showing signs of easing, while EV demand in China remains strong. Which is inspired by the policy of the government. Promotion of clean vehicles. in our analysis Nio, Xpeng and Li Auto: How Do Chinese EV Stocks Compare? We compare the financial performance and valuations of the major US-listed Chinese electric vehicle players.

[7/21/2021] What’s new in Lee Auto stock?

Lee Auto Stock (NASDAQ:LI) declined nearly 6% last week (five trading days) compared to the S&P 500, which was down about 1% over the same period. The sell-off comes as US regulators face mounting pressure to enforce the Holding Foreign Companies Accountable Act, which could result in some Chinese companies being delisted from US exchanges if they do not comply with US auditing rules. . While this is not exclusive to Li, most US-listed Chinese stocks have seen declines. Separately, China’s top technology companies, including Alibaba and Didi Global, have also come under greater scrutiny by domestic regulators, and this is likely to impact companies such as Li Auto as well. So will Lee Auto’s stock continue to decline, or does a rally seem more likely? According to the Trefis machine learning engine, which analyzes historical price information, Lee Auto’s stock is expected to rise 61% over the next month. View our analysis Lee Auto stock likely to rise for more information.

The basic image of the Le Auto is also looking better. Driven by the launch of an upgraded version of the Li-One SUV, the demand for the Li is seeing a spurt. In June, deliveries increased 78% sequentially and Lee Auto also outperformed the upper end of its Q2 guidance of 15,500 vehicles, delivering a total of 17,575 vehicles in the quarter. Li’s delivery also eclipsed that of fellow US-listed Chinese electric car startup Xpeng in June. Things should keep getting better. Automotive Semiconductor’s worst shortfall – which disrupted auto production over the past few months – is now over, with Taiwan’s TSMC, one of the world’s largest semiconductor makers, indicating that it will increase production in Q3. will increase significantly. Can help increase sales of Li…

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