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XPeng: Attractive Dip Buying Opportunity For 'Tesla Of China'

Mar. 05, 2021 4:17 PM ETXPeng Inc. (XPEV)22 Comments
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Investor Trip


  • XPeng is one of the fastest-growing smart EV makers in China.
  • The company is more similar to Tesla than Nio due to its auto parking, self-driving technology, and growing supercharging network.
  • XPeng stock trades at a huge discount to Nio and looks like a great long-term investment.

XPeng (NYSE:XPEV) is a smart EV maker that's based out of China. Founded in 2015, the company draws many comparisons to Tesla (TSLA) in its product design, technology, self-driving capabilities, and self-branded super charging network. While Nio (NIO) receives far more attention and publicity, I think XPeng is more similar to Tesla than Nio is.

Chinese EV stocks reached an all-time high in early February but have sold off lately due to investors chasing more attractive bond yields and the temporary delay in deliveries caused by the Chinese lunar new year.

ChartData by YCharts

Source: Ycharts.com

However, I believe patient long-term investors will find a lot of value in XPeng's growing brand and footprint in the highly competitive Chinese electric car market.

XPeng's Business Model

XPeng produces 2 EVs: the G3 SUV and the P7 sedan.

Xpeng G3Source: Wikipedia.org

The P7 sedan is XPeng's most popular EV and the company has delivered 20,181 p7 sedans as of March 1st, 2021.

Xpeng P7Source: Wikipedia.org

In a recent February 2021 delivery update, XPeng delivered a total of 2,223 EVs. Deliveries fell substantial from an all-time high of 6,015 during January 2021. The company attributed the massive decline to the weeklong Chinese Lunar New Year and expects to get back on track in March.

The good news is total January and February 2021 deliveries increased 577% YoY with no signs of slowing down as China prepares for a multi-decade march towards zero carbon emissions.

XPeng deploys its own branded super charging station networks just like Tesla. The company has expanded to 135 super charging stations covering 50 cities as of September 20th, 2020.

The Bullish Case for XPeng

XPeng is 1/3 of Nio's market cap yet provides a ton of upside if deliveries continue to rise.

XPeng only produces 2 EVs at the moment yet

This article was written by

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