XPeng Inc. was started in 2015. Since then, the company has become one of the biggest competitors in the field of electric vehicles. The corporation, targeted at the Chinese marketplace, makes a huge contribution to the development and improvement of the smart EV concept by introducing new technologies and advancements in the in-car operating systems.
XPeng’s leadership is also caused by the company’s determination to manufacture eco-friendly vehicles. Currently, the most popular products developed by this Chinese carmaker are an SUV (the G3) and a four-door sports sedan (the P7). Is the company worth investing in?
Performance of the Company
XPeng has been showing a great performance both in terms of the number of vehicles sold and in terms of growing revenues. In 2019, the company sold around 1,500 cars. In the following year, this number increased to more than 6,400 vehicles sold, whereas, originally, it was just 4,000 vehicles sold. In December 2021, XPeng reported selling 12,000 vehicles a year.
In 2022, the market capitalization of XPeng is $17.7 billion. The XPeng stock price is currently traded at $20.50 per share. You will find the assets on all major stock exchanges, including NYSE, under the symbol XPEV stock.
The financial performance also shows positive dynamics. In 2019, the company generated around $0.9 billion of revenue. According to the 2021 report, the annual revenue of that year exceeded $3.2 billion. In the first quarter of 2022, the company showed a 156% growth, compared to the same period of 2021.
- XPeng stock became traded publicly in August 2020. XPEV stock was included in the listings of NYSE. The debut was quite impressive. The XPeng stock price increased by 100% shortly after it got listed on the exchange. That’s why 2020 is considered a breakout year for this company.
- In 2020, it was reported that the total number of electric vehicles sold in China exceeded 1 million cars. A great share of this number was developed and manufactured by XPeng corporation. Since the company is the leading EV manufacturer in China, XPeng stock increased from $19 in October to its historic maximum of $58.76 in November 2020.
- In the first half of 2021, the stock had a rough time. Despite the increasing competition, the stock managed to recover by the end of that year. In 2021, the highest point at which XPeng stock was traded was $55 per share. This price was achieved on November 1, 2021.
- The company announced at the beginning of 2022 that they plan to increase production and sales of cars by 57% compared to 2021. If the goal is achieved, the corporation will sell 7.2 million units. This might positively impact the dynamic of XPEV stock price movements.
Trading Conditions with DotBig
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Pros & Cons
- XPeng is the leading EV manufacturer in the Chinese marketplace. NIO is the only competitor of XPeng in China but in 2022, XPeng is expected to ramp up its electric vehicle deliveries.
- Competition against Tesla in the international market makes XPeng look for new ways to increase sales and deliver more units. This has resulted in the company growing faster than had been expected a few years ago.
- XPeng is outperforming the expectations of the industry. Due to the tough competition, the company has to explore different avenues and work on the technological aspect of its products. Experts admit that so far, the company goes on pretty well.
- Currently, the XPEV stock is traded at a relatively low cost, which is a perfect opportunity for beginning investors to enter one of the most progressive sectors of modern manufacturing.
- The political circumstances might restrict the company from fulfilling its ambitions. This is related to strict Chinese domestic policies that are being tightened these days.
- Investors are concerned due to the accusations of the company the theft of some technological advances.
As of today, the company has great prospects for further growth and development. If it manages to achieve its goals stated at the beginning of the year despite the potential obstacles, the stock will likely increase. To conclude, XPeng stock is a worthy investment in 2022.