Xpeng Motors announced the first delivery of its smart electric vehicles to customers in Norway, as the Chinese EV company makes a foray into the European car market.
The move marks Xpeng’s (XPEV) first market outside of China. The EV company said that 100 Xpeng G3 smart electric SUVs will be handed over to their new owners this week across 28 cities and towns in Norway.
While the Chinese market is Xpeng’s primary customer base, the company said that it is now working on developing its international strategy following the launch of its first production model in Norway. As part of the global strategy, the EV maker is planning to roll out its second production model, the P7 electric sports sedan, in Europe within the next 12 months.
“This week’s customer deliveries in Norway represent a key milestone in Xpeng’s aspirations to become a truly international smart EV brand,” said Xpeng CEO He Xiaopeng. “Our launch in Europe comes just as consumers are shifting in increasingly large numbers to more sustainable personal transport, and at a tipping point where governments around the world are stepping up their zero emission efforts. We look forward to being a significant driver in accelerating that transition.”
Additionally, Xpeng is “actively exploring opportunities in other EV-mature markets with supportive government policies, advanced EV infrastructure and high EV awareness as the top priority markets,” the company stated.
Xpeng, which launched its first EV model in December 2018, has this year delivered 21,341 of its smart EVs as of the end of November, representing an 87% increase year-over-year.
Founded in 2015, Xpeng, which listed its shares in the US in August, secured RMB 4 billion in funding in September to support the development and construction of a smart EV manufacturing facility in Guangzhou.
Its shares, which began trading on the New York Stock Exchange after its $1.7 billion initial public offering at an offering price of $15 per ADS, closed at $46.38 on Dec. 18. The stock has dropped 15% over the past month, as the company completed its first public follow-on offering on Dec. 11 and raised $2.5 billion. (See XPEV stock analysis on TipRanks)
XPEV has picked up 7 Buys, 1 Hold, and 1 Sell which add up to a Moderate Buy analyst consensus. Against this, the average price target stands at $41.75, implying 10% downside risk over the coming year.
Earlier this month, UBS analyst Paul Gong cut the stock’s rating to Hold from Buy but more than doubled his price target to $59 from $25, suggesting that the recent share surge has gone too far, “after an over-200% rally.”
“Despite raising our volume forecasts on an increasingly positive long-term view (and reducing loss-per-share estimates), we view its potential upside/downside as largely balanced,” Gong wrote in a note to investors.
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