XPeng Delivers 15,295 Smart EVs in June, Up 133% Year-Over-Year
July 4, 2022
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XPeng Motors($NYSE:XPEV), a leading Chinese electric vehicle (EV) manufacturer, announced that its June deliveries grew 133% year-over-year (YOY) to 15,295 smart EVs and 51% month-over-month (M/M). June deliveries consisted of 8,045 P7s, the company’s smart sports sedan, 5,598 P5 smart family sedans, and 1,652 G3i and G3 smart compact SUVs. In mid-May, the company accelerated deliveries with resumed double-shift production at its Zhaoqing plant and in June it reached the milestone of 200,000 cumulative deliveries. The strong growth in XPeng’s deliveries is due to the continued increase in demand for EVs in China, the world’s largest EV market. The Chinese government’s continued support for the EV industry, including subsidies and policies that favor EVs over internal combustion engine (ICE) vehicles, is expected to maintain strong growth in the Chinese EV market in the long term. XPeng’s strong delivery growth is also due to the company’s expanding sales network and product lineup. This will likely result in continued strong growth in XPeng’s market share and earnings.
Market Reaction
News sentiment has been mostly negative so far. This could be due to the current global situation with the pandemic, or it could be unrelated.
VI Analysis
The company’s fundamentals reflect its long term potential. The VI app makes it easy to see how XPENG is doing in terms of its financials, business model, and competitive landscape. The intrinsic value of XPENG shares is around $67.6, as calculated by the VI Line. XPENG stock is currently traded at $30.3, which represents a discount of 55%.
Summary
This may have been due to negative news surrounding the company, such as investigations into its accounting practices. However, XPeng remains a strong company, and its stock price may rebound in the future.
