Is XPeng a Good Investment?
Source: iStock

Is XPeng Stock a Good Buy at These Prices?

By

Updated

XPeng stock rose more than 33 percent on Nov. 12 after the company reported its third-quarter earnings results. In the third quarter, XPeng delivered 8,578 vehicles, up 266 percent YoY and 166 percent sequentially. The EV (electric vehicle) maker reported an adjusted EPS of -$0.16 on sales of $293.1 million. Wall Street expected the company to report an adjusted EPS of -$0.18 on sales of $284 million. Is XPeng stock a good long-term investment?

Article continues below advertisement

XPeng, a China-based company, currently has two cars on the market—the P7 sedan and the G3 SUV. XPeng has delivered 3,040 cars in October 2020, which represents 229 percent growth YoY. The deliveries consisted of 2,104 P7s and 936 G3s. 

Can you buy XPeng cars in the U.S.?

XPeng hasn't shared official plans to sell its electric cars in the U.S., according to The Drive. In March 2020, the company received a permit to test its electric P7 sedan on U.S. roads.

Article continues below advertisement
Is XPeng a Good Investment?
Source: XPeng Facebook

What was XPeng’s IPO price?

XPeng stock trades on the NYSE under the ticker symbol “XPEV.” The EV maker's shares started trading on Aug. 27, when the company priced its IPO at $15 per share.

Article continues below advertisement

XPeng versus NIO

In October, XPeng delivered 3,040 vehicles, while NIO delivered 5,055 vehicles. While they are both Chinese EV makers, NIO and XPeng have different production strategies. XPeng manufactures the P7 model itself in a home-built smart factory, while NIO outsources production.

What's NIO’s stock price today?

As of 7:24 a.m. ET in pre-market trading on Nov. 13, NIO stock was up about 6.1 percent at $51.43. The stock rose 12.1 percent on Nov. 12 and closed at $48.30 with a market capitalization of $65.8 billion. NIO stock is trading 2.1 percent below its 52-week high of $49.35 and 2,810 percent above its 52-week low of $1.66.

Article continues below advertisement

What's XPeng’s stock forecast?

Currently, analysts' average stock price forecast for XPeng is $201.31, which suggests a 350 percent upside. The highest target price of $285.08 implies a 537.3 percent upside, while the lowest target of $150.60 implies a 236.7 percent upside. Among the eight Wall Street analysts tracking XPeng, seven recommend a buy and one recommends a hold.

Article continues below advertisement

Investors can expect more returns from XPeng. The EV company has been increasing its deliveries. The company's gross margins turned positive in the third quarter. In the fourth quarter, XPeng expects 10,000 deliveries, up 211 percent YoY. The company also expects sales of about $332 million, which represents a 244 percent rise YoY.

Is XPeng stock a good buy?

Yes, XPeng stock is a good buy based on the strong growth outlook. The company’s top line could get a boost as EV adoption grows. With Tesla stock costing over $400, XPeng stock provides a low-cost entry to the EV market.

How to buy XPpeng stock

To buy XPeng stock on the NYSE, investors need to open a brokerage account with online stockbrokers like TD Ameritrade, E-Trade, Charles Schwab, or Robinhood. After you have funded your stock trading account, you can buy XPeng stock.

Advertisement

More From Market Realist