Stock Analysis & Ideas

XPeng Stock (NYSE:XPEV): Take Flight with an Audacious Automaker

Story Highlights

Risk-tolerant investors can pin their hopes on XPeng’s super-fast-charging electric SUV. There may be a bargain afoot, moreover, as XPeng stock is sinking even while one of its new vehicles is flying high – literally.

XPeng (NYSE: XPEV) introduced an SUV last month, and you can already see some of these vehicles on the roadways in China. Yet, there’s another vehicle that’s capturing some attention in the press, which could help downtrodden XPeng stock turn around and head for the skies. With these factors in mind, I am bullish on XPeng stock.

XPeng is a Chinese electric vehicle (EV) manufacturer, and I know what you might be thinking right now. There are plenty of EV makers out there already. Why invest in one when there’s so much competition?

That’s a valid question, but XPeng isn’t like all the other clean energy vehicle manufacturers. As we’ll discover, XPeng has extremely high quality and sustainability standards for its EVs. Besides, the company is willing to take risks and innovate while others just imitate. So, are you ready to test drive XPEV stock?

Financial Traders Don’t Appreciate XPeng at All

Some companies just can’t seem to get any respect in the financial markets, even when they create high-quality products. XPeng is a perfect example of this, as the automaker is committed to producing the finest EVs in China and perhaps even the world.

For XPEV stock to trade under $10 is absurd, in my opinion. The shares cost $50 a piece at the beginning of the year. Now, they’re trading at less than $10. Does the market really think that XPeng, as a company, is currently worth one-fifth of its value in January?

If you agree that this is irrational and represents an opportunity, then here’s something else to consider. Just recently, XPeng earned its third consecutive annual AA rating from MSCI ESG Research. This puts XPeng among the top carmakers in the world in terms of ESG performance.

Now, that’s what I call a commitment to quality. On top of that, XPeng received an ESG score of 49 from the Dow Jones Sustainability Index. This marks a 48% increase compared to 2021’s score and is the leading score compared to other Chinese automakers.

XPeng’s G9 Flagship SUV is Already on the Road

So, we know that XPeng makes high-quality EVs, but what has the company been up to lately? What we know for certain is that XPeng is getting its new and powerful G9 Flagship SUV onto driveways and roadways in China, and this could be the start of a massive revenue stream for XPeng.

The company just launched the G9 Flagship SUV less than a month ago, and it could be a game-changer. CEO and Chairman He Xiaopeng touted the G9 series as the “world’s fastest-charging mass-production SUV.” The G9 Flagship SUV also offers the “industry’s first full-scenario Advanced Driver Assistance System,” along with a dual-chamber air suspension system.

I’ll bet the “world’s fastest-charging mass-production SUV” part caught your eye. How fast can the G9 Flagship SUV charge? Apparently, the 4C version of G9 can charge from 10% to 80% in 15 minutes, while the standard 3C version can charge from 10% to 80% in 20 minutes – not too shabby, you must admit.

Furthermore, the G9 series isn’t just a prototype model sitting in a garage somewhere. It’s actually on the roadways, as XPeng delivered 184 G9 Flagship SUVs in September. That’s a decent start, and mass deliveries for the G9 series are scheduled to start later this month.

XPeng is Turning Heads with an Electric Flying Car

XPeng’s investors should stay grounded – but don’t be afraid to look to the skies, as the company just completed a flight of XPeng’s electric flying car in Dubai. Sure, this will generate some publicity for XPeng, but prospective investors should also consider the market-disrupting potential here.

So, here are the details. XPeng affiliate XPeng Aeroht conducted what was essentially a test flight of its electric flying car, the Xpeng X2, in Dubai recently. Actually, “publicity stunt” might be a more apt description than “test flight.”

Whichever way we choose to describe the flight of the X2, it still represents a step forward in flying-car technology. That’s because the two-seater X2 features an “enclosed cockpit with a minimalist teardrop-shaped design” and a “complete carbon fiber structure to reduce weight.”

The X2 even offers an autonomous driving mode – if you dare to use it. If not, then X2 drivers/flyers can always revert to manual driving mode. Either way, if the X2 “takes off” in terms of sales and revenue generation, this could put XPeng in the driver’s seat of a high-potential niche industry.

Is XPEV Stock a Buy or Sell, According to Analysts?

Turning to Wall Street, XPEV stock is a Strong Buy based on nine Buys and two Hold ratings. The average XPeng price target is $44.79, implying 369% upside potential.

Conclusion: Should You Consider XPeng Stock?

Frankly, it seems irrational that XPEV stock is below $10. This is an innovative EV manufacturer with an uncompromising commitment to quality and ESG standards.

Additionally, XPeng has a powerful electric SUV that charges very quickly, not to mention an electric flying car that could become a disruptive force in an emerging industry. With all of that in mind, risk-tolerant investors should consider getting into the fast lane with a few shares of XPeng stock.

Disclosure

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