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XPeng Emerging As A Top Chinese EV Player Against NIO And Tesla

Apr. 09, 2021 7:06 PM ETXPeng Inc. (XPEV)NIO, TSLA37 Comments


  • XPeng has pushed itself toward a more leading position within technological advancement compared to NIO and Tesla.
  • XPeng is working on building one of the best, if not the best, autonomous driving and lidar systems in-house.
  • The P7 also recently claimed the longest autonomous drive in China, with interventions and other benchmarks surpassing Tesla's Model 3.
  • Chip shortages and competition are two external risks to XPeng, while  R&D headcount growth, margins and profitability are internal risks.
  • Revenues remain poised to reach approximately RMB13.2 billion (US$2.05 billion) for FY21, rising to RMB30 billion (US$4.50 billion) in 2022.

exterior of Xpeng store. A Chinese electric car brand
Photo by Robert Way/iStock Editorial via Getty Images

While NIO (NIO) has arguably led the charge within the domestic EV sector in China, XPeng (NYSE:XPEV) is quickly emerging as one of the top EV players in the country due to technological advancement and international expansion. Although

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Comments (37)

4SustainableStocks profile picture
Great comparison and conclusion. I concur. Some comments about not yet profitable, but that’s because starting a car company is capital exhaustive the first several years. As long as they produce to capacity and sell what they produce and keep increasing capacity and market share, there is nothing wrong IMO. Long XPEV
ArtfulDodger profile picture
No way I can buy a company that has a 4% GPM and a -75% NPM and is losing money mouth to toe. No way!
Gnzuf the bargain in electric vehicle industry, profitable car manufacturer in China, good dividend yield and Aion brand electric vehicles.
BYD may lack the sex appeal of her three little sisters, but will laugh last.

Ignore VW at your peril.
necto profile picture
NIO will be first . Long NIO
lsmtihcom profile picture
You point out the year over year sales growth, but that is really meaningless since the P7 was not even marketed last year at this time. The real question with Xpeng is that March sales are less than December sales. I understand that seasonality favors Q4, but if the P7 and G4 were growing sales rapidly, that seasonality would not matter.

Tesla sold 35K cars in March, BYD sold 10K Han cars, so if Xpeng is stuck at the 5K mark with month over month growth slowing and a lack of demand, that is a very bad sign and the company is overvalued.

I dont quite understand why the P7 is not selling better. Is the Tesla brand so strong that Xpeng cant gain traction against it?
Ben Gee profile picture
@lsmtihcom The Chinese EV market is getting crowded. I still think BYD is my best bet.
buried-shopno profile picture
@Ben Gee is it because of price points offered by XPEV and BYD? How do they compared from technological points?
Xpev is a good car. But not a proper EV. It is an ICE turbocharged EV.
It’s overvalued compare to NIO even though the number of shares offered are about half of NIO. Still not justified.

Medium term it could be a good hedge. Long term it loses to NIO.
Argyll profile picture
@CaptainReza = Xpeng cars are 100% electric. It is spending more on R&D than NIO and XPEV has a clear lead over NIO in autonomous driving tech. Both companies should do well.

Capitalism Is Freedom profile picture
@CaptainReza "But not a proper EV. It is an ICE turbocharged EV." WTF are you talking about? Evidence? Its 100% EV...not ICE at all. ???
@Argyll now you take advise or recommend investment case based on a Light show?!
As I said, Xpev is A good car. But certainly not in the same class as NIO.
Informative. Thank you for sharing pros and cons. There is so much room to grow eve sales that nio xpeng and Tsla should all take sales from the tens of millions of ICE vehicles sold each year

Autonomous testing data is hard to compare isn’t it? Different routes, different laws and topographies. If the software changes from the test two months ago to a new test with a more current release it’s invalid.

Wish I had the money to acquire all autonomous EV and create a proving ground certification process to benchmark autonomous safety in as near identical testing conditions. All certification would be aligned to same “current available version”. MPG is over. Need new standards.

Testing safety by smashing them into things is very important and something tsla does very well. Shifting to crash avoidance rating to prevent the crash and save millions of lives is the real goal and why I would love to see all companies that innovate succeed.
Mobility Matters Research profile picture
@EV_Tom i think in the case of P7 v. Model 3 the two took identical routes, but I'm not sure if it was like a side-by-side test so weather conditions would be identical or if it was at a different time
@Legacy Legends, LLC

Xi said “NIO”! Tesla only works in China until the “Party” says it’s over! Long XPEV!
XPEV & NIO are both going to be Monsters, this is only the start imo
artesianwell54 profile picture
Definitely Xpeng top player and with announcement of third giga fab in Wuhan now capacity will be huge on top of the best tech, quality and autonomous driving.
lsmtihcom profile picture
@artesianwell54 Despite the very large capacity, sales seem to be stuck fairly low in March. This company needs to be making 10K cars a month or it is really not a significant player. Keep in mind that it sells cars at lower price points, so volumes should be much higher.
artesianwell54 profile picture
@lsmtihcom Xpengs upcoming Q4 Guangzhou giga fab alone will have 250k capacity, all the EV - battery is stuck low recently including Tesla
GordongekkoCrypto profile picture
Well written. Anyone else involved in EV stocks want to comment on this article? Any other EV company that can be better then Xpeng? One article i read said Li Auto is the only profitable one so far, any opinions?
Mobility Matters Research profile picture
@GordongekkoCrypto li is the only profitable startup between it, nio & xpeng
TomThinc profile picture
@GordongekkoCrypto BYDDF. Very under the radar. doesn't get the love it deserves. Not sexy enough but perhaps best biz model, mix of products in the whole EVerse.
GordongekkoCrypto profile picture
@TomThinc any more details about this gem? Where can it be traded and what is so good about it?
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