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Alibaba-Backed XPeng Posts 342% Jump In EV Deliveries; Shares Rise 8%
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Alibaba-Backed XPeng Posts 342% Jump In EV Deliveries; Shares Rise 8%

XPeng Motors delivered a total of 4,224 of its smart electrical vehicles (EVs) in November, a stellar 342% increase year-over-year. Shares surged more than 8% in Tuesday’s pre-market trading.

XPeng’s (XPEV) deliveries consisted of 2,732 P7s, the company’s smart sports sedan, and 1,492 G3s, its smart compact SUV. On a month-to-month comparison, delivery numbers are up from the 3,040 EVs delivered during the month of October.

Since the beginning of the year until November 30, 2020, the Chinese EV company delivered a total of 21,341 units, representing an 87% increase year-over-year. The company reported that a total of 11,371 P7s year-to-date were delivered, after beginning mass delivery of the vehicle at the end of June this year.

Last month, XPeng set itself a target to deliver a total of about 10,000 vehicles this quarter, reflecting a 211% increase from last year. During the third quarter ended Sept. 30, vehicle deliveries reached 8,578 units.

Founded in 2015, XPeng, which listed its shares in the US in August, secured RMB4 billion in funding in September to support the development and construction of a smart EV manufacturing facility in Guangzhou. Back in July, the company raised $500 million with a group of investors including Aspex, Coatue, Hillhouse Capital and Sequoia Capital China.

Its shares, which began trading on the New York Stock Exchange after its $1.5 billion initial public offering at an offering price of $15 per ADS, closed at $58.76 on Nov. 30. (See XPEV stock analysis on TipRanks)

The stock has recently attracted ample attention as more analysts initiated its coverage. XPEV has picked up 7 back-to-back Buy ratings, which add up to a Strong Buy analyst consensus. Against this, the average price target stands at $35, implying 40% downside potential over the coming year.  

J.P. Morgan analyst Nick Lai last month raised the stock’s price target to $50 from $43 and reiterated a Buy rating, arguing that XPeng is set to benefit from China’s multi-year smart EV trend.

“We also believe the company is implementing the right strategy continuing developing in-house autonomous solution, the main differentiating factor from peers,” Lai wrote in a note to investors.  

The analyst projects that XPeng’s EV market share in China will grow from 1% in 2019 to over 8% by 2025. He expects the company to expand at a 43% compounded annual growth rate over the 2020-2025 period.

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