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Will XPeng's (XPEV) SEPA2.0 Act as a Game Changer for the Stock?
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China’s smart electric vehicle (EV) company, XPeng Inc. (XPEV - Free Report) has introduced its cutting-edge integrated technology architecture, SEPA2.0 (Smart Electric Platform Architecture). This new platform lays the groundwork for the production of future models and is expected to significantly streamline R&D efficiency while catering to diverse customer needs at optimized costs.
Delving Deeper Into SEPA2.0
SEPA2.0 is a highly adaptable and flexible platform that can accommodate multiple vehicle platforms with wheelbases between 1,800mm and 3,200mm. The platform is also scalable, supporting various vehicle types, including sedans, coupes, hatchbacks, wagons, SUVs, MPVs, and pickup trucks. The first production model based on SEPA2.0, the XPENG G6 Ultra Smart Coupe SUV, is set to debut at Auto Shanghai 2023 on Apr 18.
XPeng's Chairman and CEO, He Xiaopeng, envisions that the revolutionary intelligent architecture will lead smart EV technology development for the next three years. This will provide customers with rapid advancements in technology, faster software upgrades, significant cost savings, and an elevated product experience. SEPA2.0 will architecturally empower XPeng in their ongoing quest to redefine mobility experience with compelling value, superb comfort, and rich infotainment.
SEPA2.0-based R&D platform will boost the efficiency of XPeng's in-house full-scenario Advanced Driver Assistance System (ADAS), XNGP, by 30%. At the same time, it will reduce ADAS software model adaptation costs by 70%. XNGP will consistently evolve and upgrade its driving assistance skills, with the help of China's largest and only operational autonomous driving supercomputing center, closed-loop data feedback, and self-evolving AI system.
In-car operating system, Xmart OS, leverages a multi-sensor software and hardware platform to augment and transform control and driver-vehicle interaction. With the SEPA2.0 platform, Xmart OS will see reduced software adaptation costs, shorter voice software R&D cycles, and lower voice assistant service costs. This will make the industry's top smart cabin services available to every XPeng owner while revolutionizing cockpit instrumentation and road perception.
The new technology architecture also includes X-EEA Electrical and Electronic Architecture, a data technology platform with a whole-car software platform and a hardware architecture platform. X-EEA underpins XPeng's technology foundation, optimizing overall vehicle R&D costs, shortening software iteration cycles, and increasing OTA update speed.
SEPA2.0's architecture-based solutions will also boost charging efficiency with 800 Volt High Voltage Silicon Carbide (SiC) Platform and XPower 800 Volt High Voltage Oil-cooled Flat-wire SiC Integrated Electric Drive System. These technologies will increase battery charging speed and overall electric drive efficiency, translating into an estimated increase in EV range. The X-HP Smart Thermal Management System will ensure range and charging capacity under all weather conditions.
XPeng's charging network is set to expand in 2023 with approximately 500 new S4-enabled XPENG superfast charging stations becoming operational. This network expansion will enhance the company's capabilities and convenience for consumers.
Advanced manufacturing capabilities will be introduced, such as Front and Rear Integrated Aluminum Die Casting Technology and CIB (Cell Integrated Body) Technology. These technologies will optimize cabin design, enhance overall driving performance, and meet the highest safety standards in major markets like China, North America, and Europe.
SEPA2.0 to Boost XPEV Prospects
The innovative technology, SEPA2.0, marks a significant milestone for the company as it will enable XPeng to produce a diverse range of vehicles while optimizing costs and increasing efficiency across the entire production process. As XPeng continues to expand its charging network and introduce advanced manufacturing capabilities, it will strengthen its position in the competitive EV market.
The versatility of the SEPA2.0 platform will enable XPeng to cater to a wider range of customers with varying needs and preferences. This adaptability is crucial for the company to stay ahead in the rapidly evolving electric vehicle industry. With faster R&D cycles and significant cost savings, XPeng can offer customers more advanced technology at competitive prices, making their vehicles more appealing to a broader market.
Moreover, the expansion of XPeng's charging network, with the addition of new S4-enabled superfast charging stations, will improve charging infrastructure across China. This will not only increase convenience for XPeng customers but also help attract new customers who may be concerned about the availability of charging stations.
These developments are likely to bolster investor confidence and positively impact the prospects of XPEV stock in the long run.
Zacks Rank & Key Picks
XPeng currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for XPEV’s 2023 loss per share has narrowed by 24 cents and implies a year-over-year improvement of 19%.
Geely is engaged in automobile manufacturing and related areas. The Zacks Consensus Estimate for GELYY’s 2023 sales and earnings implies year-over-year growth of 57.5% and 7.4%, respectively.
BYD is engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries, and mobile phone components. The Zacks Consensus Estimate for BYDDY’s 2023 sales implies year-over-year growth of 175%.
Ferrari is engaged in designing, manufacturing and selling sports cars. The Zacks Consensus Estimate for RACE’s 2023 sales and earnings implies year-over-year growth of 14% and 19.8%, respectively.
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Will XPeng's (XPEV) SEPA2.0 Act as a Game Changer for the Stock?
China’s smart electric vehicle (EV) company, XPeng Inc. (XPEV - Free Report) has introduced its cutting-edge integrated technology architecture, SEPA2.0 (Smart Electric Platform Architecture). This new platform lays the groundwork for the production of future models and is expected to significantly streamline R&D efficiency while catering to diverse customer needs at optimized costs.
Delving Deeper Into SEPA2.0
SEPA2.0 is a highly adaptable and flexible platform that can accommodate multiple vehicle platforms with wheelbases between 1,800mm and 3,200mm. The platform is also scalable, supporting various vehicle types, including sedans, coupes, hatchbacks, wagons, SUVs, MPVs, and pickup trucks. The first production model based on SEPA2.0, the XPENG G6 Ultra Smart Coupe SUV, is set to debut at Auto Shanghai 2023 on Apr 18.
XPeng's Chairman and CEO, He Xiaopeng, envisions that the revolutionary intelligent architecture will lead smart EV technology development for the next three years. This will provide customers with rapid advancements in technology, faster software upgrades, significant cost savings, and an elevated product experience. SEPA2.0 will architecturally empower XPeng in their ongoing quest to redefine mobility experience with compelling value, superb comfort, and rich infotainment.
SEPA2.0-based R&D platform will boost the efficiency of XPeng's in-house full-scenario Advanced Driver Assistance System (ADAS), XNGP, by 30%. At the same time, it will reduce ADAS software model adaptation costs by 70%. XNGP will consistently evolve and upgrade its driving assistance skills, with the help of China's largest and only operational autonomous driving supercomputing center, closed-loop data feedback, and self-evolving AI system.
In-car operating system, Xmart OS, leverages a multi-sensor software and hardware platform to augment and transform control and driver-vehicle interaction. With the SEPA2.0 platform, Xmart OS will see reduced software adaptation costs, shorter voice software R&D cycles, and lower voice assistant service costs. This will make the industry's top smart cabin services available to every XPeng owner while revolutionizing cockpit instrumentation and road perception.
The new technology architecture also includes X-EEA Electrical and Electronic Architecture, a data technology platform with a whole-car software platform and a hardware architecture platform. X-EEA underpins XPeng's technology foundation, optimizing overall vehicle R&D costs, shortening software iteration cycles, and increasing OTA update speed.
SEPA2.0's architecture-based solutions will also boost charging efficiency with 800 Volt High Voltage Silicon Carbide (SiC) Platform and XPower 800 Volt High Voltage Oil-cooled Flat-wire SiC Integrated Electric Drive System. These technologies will increase battery charging speed and overall electric drive efficiency, translating into an estimated increase in EV range. The X-HP Smart Thermal Management System will ensure range and charging capacity under all weather conditions.
XPeng's charging network is set to expand in 2023 with approximately 500 new S4-enabled XPENG superfast charging stations becoming operational. This network expansion will enhance the company's capabilities and convenience for consumers.
Advanced manufacturing capabilities will be introduced, such as Front and Rear Integrated Aluminum Die Casting Technology and CIB (Cell Integrated Body) Technology. These technologies will optimize cabin design, enhance overall driving performance, and meet the highest safety standards in major markets like China, North America, and Europe.
SEPA2.0 to Boost XPEV Prospects
The innovative technology, SEPA2.0, marks a significant milestone for the company as it will enable XPeng to produce a diverse range of vehicles while optimizing costs and increasing efficiency across the entire production process. As XPeng continues to expand its charging network and introduce advanced manufacturing capabilities, it will strengthen its position in the competitive EV market.
The versatility of the SEPA2.0 platform will enable XPeng to cater to a wider range of customers with varying needs and preferences. This adaptability is crucial for the company to stay ahead in the rapidly evolving electric vehicle industry. With faster R&D cycles and significant cost savings, XPeng can offer customers more advanced technology at competitive prices, making their vehicles more appealing to a broader market.
Moreover, the expansion of XPeng's charging network, with the addition of new S4-enabled superfast charging stations, will improve charging infrastructure across China. This will not only increase convenience for XPeng customers but also help attract new customers who may be concerned about the availability of charging stations.
These developments are likely to bolster investor confidence and positively impact the prospects of XPEV stock in the long run.
Zacks Rank & Key Picks
XPeng currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for XPEV’s 2023 loss per share has narrowed by 24 cents and implies a year-over-year improvement of 19%.
A few better-ranked players in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , BYD Company Limited (BYDDY - Free Report) and Ferrari N.V. (RACE - Free Report) , all of which sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Geely is engaged in automobile manufacturing and related areas. The Zacks Consensus Estimate for GELYY’s 2023 sales and earnings implies year-over-year growth of 57.5% and 7.4%, respectively.
BYD is engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries, and mobile phone components. The Zacks Consensus Estimate for BYDDY’s 2023 sales implies year-over-year growth of 175%.
Ferrari is engaged in designing, manufacturing and selling sports cars. The Zacks Consensus Estimate for RACE’s 2023 sales and earnings implies year-over-year growth of 14% and 19.8%, respectively.