XPeng Stock Can Double From Here

Summary

• Shares in XPeng have fallen over 70% since June as fears about a slump in deliveries and widening net losses have manifested.
• However, these fears seem overblown, as forex impacts were the only driving factor to widened losses, and deliveries seem poised to rebound with more models on the way.
• While capacity can support up to 400,000 vehicles next year at max, forecasting 18,000/month volumes paves the way for ~60% annual growth.
• XPeng is potentially targeting over 120,000 G9 units along with two to four new vehicles in 2023, supporting a rapid recovery and growth in deliveries.
• Valuing XPeng at 1.4x EV/revenues for 2023 projects over 110% upside to shares.

Robert Way/iStock Editorial via Getty Images

Shares in Chinese EV startup XPeng (NYSE:XPEV) have taken a beating since June, falling nearly 70% as the OEM struggled with two sequential declines in revenues amid margin weakness and geopolitical concerns. Deliveries have also slumped, in part due to a resurgence of

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