XPeng ‘executed another major strategic move,’ says Deutsche Bank

Deutsche Bank says XPeng “executed another major strategic move,” bringing China’s largest ride hailing operator Didi onboard as a partner and investor. XPeng will gain greater volume and scale by getting access to Didi’s network of 19M drivers in China, the analyst tells investors in a research note. The firm believes this should funnel in “many more” mobility and fleet customers while deepening XPeng’s reach into the lower end of consumer mass market. The firm is “very encouraged” by XPeng’s ability to “cultivate marquee agreements that expand the reach of its tech and increase scale.” Deutsche Bank reiterates a Buy rating on the shares with a $21 price target.