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XPeng (XPEV) Soars 240% Since IPO: What's Driving the Rally?
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XPeng Inc.(XPEV - Free Report) has been witnessing bullish run on the bourses, of late. The company made a public debut on the New York Stock Exchange on Aug 27, 2020, and its shares have appreciated a whopping 240% since then.
One of the rising stars in the Chinese electric vehicle (EV) market, XPeng aims to boost e-mobility prospects in the world’s biggest auto market on its innovative technology, expansion plans and high-performance electric cars.
This Zacks Rank #3 (Hold) company shares space with BYD Co. (BYDDY - Free Report) , Li Auto (LI - Free Report) and NIO Limited (NIO - Free Report) in China. Though XPeng sells predominantly in China, it recently expanded sales into Norway as well.
XPeng delivered stellar operating and financial results for the September-end quarter, which was the company’s first quarter as a public entity. Total revenues for the reported quarter were $293.1 million, skyrocketing 342.5% year on year. Moreover,this was the first quarter in which the company recorded a positive gross profit,underscoring its growth and ability to take leverage of scale. The robust results were also highlighted by XPeng’s robust delivery numbers, production ramp-up, and advancement in research and development (R&D).
The company delivered 8,578 EVs in the third quarter, marking a 266% jump year on year. These deliveries consisted of 6,210 P7s, the company’s smart sports sedan, and 2,368 G3s, its compact smart SUV. The firm, with a record delivery count, outsold most of the other Chinese companies in September, highlighting the ability to execute its strategy in order to accelerate sales and expand foothold.
XPeng reached an important milestone in September with the decision to build its new Smart EV manufacturing base in Guangzhou. This new venture will significantly bolster the company’s production capability and put the leadership position at the forefront of the Smart EV market. The manufacturing facility, estimated to commence production in December 2022, will provide a wide range of facilities for R&D, manufacturing, vehicle testing, sales and other smart mobility functions.
Further, XPeng’s October deliveries totaled 3,040 Smart EVs, consisting of 2,104 P7s, and 936 G3s, representing a 229% surge year on year. The Chinese EV maker achieved a breakthrough last month by completing the production of 10,000 P7s on Oct 20, merely 160 days after starting mass production in late May.
During the second annual Tech Day held in October, the firm unveiled its end-to-end R&D competencies, displaying an array of state-of-the-art autonomous driving and in-car smart technologies. XPeng’s autonomous driving system — XPILOT 3.0 — slated for release in the first quarter of 2021, will provide Navigation Guided Pilot (NGP) for highways and memory auto parking for carparks, addressing some of the major challenges faced by drivers in China. The company also rolled out another OTA upgrade to the Xmart OS operating system, adding 82 new features to its vehicles.
The company’s upbeat guidance for the ongoing quarter has also boosted investors’ confidence. XPeng anticipates deliveries of vehicles to be approximately 10,000 units, suggesting a year-over-year surge of 210.8%. Projected total revenues indicate a year-on-year increase of a whopping 243.7%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
XPeng (XPEV) Soars 240% Since IPO: What's Driving the Rally?
XPeng Inc.(XPEV - Free Report) has been witnessing bullish run on the bourses, of late. The company made a public debut on the New York Stock Exchange on Aug 27, 2020, and its shares have appreciated a whopping 240% since then.
One of the rising stars in the Chinese electric vehicle (EV) market, XPeng aims to boost e-mobility prospects in the world’s biggest auto market on its innovative technology, expansion plans and high-performance electric cars.
This Zacks Rank #3 (Hold) company shares space with BYD Co. (BYDDY - Free Report) , Li Auto (LI - Free Report) and NIO Limited (NIO - Free Report) in China. Though XPeng sells predominantly in China, it recently expanded sales into Norway as well.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
What’s Driving the Price Surge?
XPeng delivered stellar operating and financial results for the September-end quarter, which was the company’s first quarter as a public entity. Total revenues for the reported quarter were $293.1 million, skyrocketing 342.5% year on year. Moreover,this was the first quarter in which the company recorded a positive gross profit,underscoring its growth and ability to take leverage of scale. The robust results were also highlighted by XPeng’s robust delivery numbers, production ramp-up, and advancement in research and development (R&D).
The company delivered 8,578 EVs in the third quarter, marking a 266% jump year on year. These deliveries consisted of 6,210 P7s, the company’s smart sports sedan, and 2,368 G3s, its compact smart SUV. The firm, with a record delivery count, outsold most of the other Chinese companies in September, highlighting the ability to execute its strategy in order to accelerate sales and expand foothold.
XPeng reached an important milestone in September with the decision to build its new Smart EV manufacturing base in Guangzhou. This new venture will significantly bolster the company’s production capability and put the leadership position at the forefront of the Smart EV market. The manufacturing facility, estimated to commence production in December 2022, will provide a wide range of facilities for R&D, manufacturing, vehicle testing, sales and other smart mobility functions.
Further, XPeng’s October deliveries totaled 3,040 Smart EVs, consisting of 2,104 P7s, and 936 G3s, representing a 229% surge year on year. The Chinese EV maker achieved a breakthrough last month by completing the production of 10,000 P7s on Oct 20, merely 160 days after starting mass production in late May.
During the second annual Tech Day held in October, the firm unveiled its end-to-end R&D competencies, displaying an array of state-of-the-art autonomous driving and in-car smart technologies. XPeng’s autonomous driving system — XPILOT 3.0 — slated for release in the first quarter of 2021, will provide Navigation Guided Pilot (NGP) for highways and memory auto parking for carparks, addressing some of the major challenges faced by drivers in China. The company also rolled out another OTA upgrade to the Xmart OS operating system, adding 82 new features to its vehicles.
The company’s upbeat guidance for the ongoing quarter has also boosted investors’ confidence. XPeng anticipates deliveries of vehicles to be approximately 10,000 units, suggesting a year-over-year surge of 210.8%. Projected total revenues indicate a year-on-year increase of a whopping 243.7%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>