Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 6 Jan, 25 | XPEV | Buy | USD 11.71 | USD 13.2 | USD 13.9 | 2 days | 18.7% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
XPeng Inc. designs, develops, manufactures, and markets smart electric vehicles (EVs) in the People's Republic of China. It offers SUVs under the G3, G3i, and G9 names; four-door sports sedans under the P7 and P7i names; and family sedans under the P5 name. The company also provides sales contracts, super charging, maintenance, technical support, auto financing, insurance, technology support, ride-hailing, automotive loan referral, and other services, as well as vehicle leasing and insurance agency services. In addition, it offers advanced driver-assistance system technology and in-car intelligent operating system; and vehicle systems comprising powertrains, and the electrical and electronic architecture. XPeng Inc. was founded in 2015 and is headquartered in Guangzhou, the People's Republic of China.
MONA M03 Success: The MONA M03 surpassed 10,000 monthly deliveries for four consecutive months and reached a 50,000 production milestone within just four months of launch, setting a new company record for speed to market
Record Monthly and Quarterly Deliveries: XPeng achieved a 36,695 vehicle delivery record in December 2024, an 82% year-over-year increase, and a 91,507 vehicle delivery record for Q4 2024, exceeding the upper end of its guidance with a 52% year-over-year growth
Heavy Dependence on MONA M03: With the MONA M03 contributing significantly to XPeng's delivery growth, the company may face risks if demand for this specific model declines or competitive pressures impact its success.
Moderate Annual Delivery Growth: While annual deliveries increased to 190,068 units in 2024, this reflects a 34% year-over-year growth, a slower rate compared to the quarterly and monthly growth figures, signaling potential market saturation or production constraints.
Key investment risks for XPeng include its reliance on sustaining rapid delivery growth amid fierce competition in the Chinese EV market and the challenges of maintaining technological leadership in the fast-evolving autonomous driving sector.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 11.71 | 10.4 | 13.2 | 13.9 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
XPeng Achieves Record Deliveries in December and Q4 2024
XPeng Inc. announced exceptional delivery results for December, the fourth quarter, and the full year 2024. The company delivered 36,695 Smart EVs in December, representing an 82% year-over-year increase and a 19% month-over-month growth, with standout contributions from the XPENG MONA M03 and XPENG P7+, which achieved over 15,000 and 10,000 deliveries respectively.
Strong Quarterly and Annual Delivery Performance
In the fourth quarter of 2024, XPeng delivered 91,507 vehicles, marking a 52% increase year-over-year and exceeding the upper end of its quarterly guidance. For the full year, XPeng delivered 190,068 vehicles, a 34% increase compared to 2023, underscoring the company’s expanding market presence and the growing demand for its Smart EV offerings.
MONA M03's Rapid Success and Production Milestone
The XPENG MONA M03, launched just four months prior, surpassed 10,000 monthly deliveries for the fourth consecutive month and achieved its 50,000th vehicle production milestone, setting a new record for XPeng’s fastest production rollout. This milestone reflects the model's popularity and its ability to break delivery records among emerging Chinese EV manufacturers.
Technological Advancements in Smart Driving
XPeng introduced significant updates to its intelligent driving systems in December. The XPENG P7+ received its second over-the-air (OTA) update with the rollout of XOS 5.5.0, featuring the industry’s first “door-to-door” Advanced Driver Assistance System (ADAS). The system provides seamless functionality across parking, urban roads, and highways. Additionally, XPeng’s XNGP system reached an 85.12% monthly active user penetration rate in urban driving, further demonstrating the company’s leadership in smart driving technologies.
Future Innovations in AI and Smart Driving
At the XPENG Turing AI Smart Driving Open Day, the company showcased China’s first end-to-end “door-to-door” smart driving capabilities. Looking ahead, XPeng plans to expand its AI-driven smart driving models to more scenarios, enhancing the driving experience for its customers and cementing its position at the forefront of autonomous driving innovation.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on XPeng Inc (NYSE: XPEV) at the closing price of USD 11.71, as on January 03, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Cyclical Industry: Auto Manufacturers
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| XPEV Xpeng Inc |
0.33 1.57% | 21.05 | - | - | 0.38 | 3.07 | 2.43 | -0.7469 |
| TSLA Tesla Inc |
15.64 6.03% | 274.80 | 45.91 | 67.57 | 5.67 | 8.35 | 12.42 | 58.23 |
| TOYOF Toyota Motor Corp |
-0.5 2.78% | 17.50 | 8.97 | 9.44 | 0.0059 | 1.11 | 0.0097 | 0.05 |
| TM Toyota Motor Corporation ADR |
-2.01 1.14% | 174.52 | 8.87 | 9.34 | 0.0052 | 1.07 | 1.27 | 6.98 |
| BYDDY BYD Co Ltd ADR |
-2.47 2.43% | 98.99 | 22.64 | 15.60 | 0.17 | 4.62 | 1.08 | 16.52 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 03, 2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2023 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
