XPeng: Cautious Optimism Backed By Aggressive Global Expansion

Summary:

  • Initiating coverage on XPeng stock with a “Buy” rating and a 24-month horizon with the possibility of growth acceleration and narrowing of EBITDA level losses.
  • XPeng’s low-priced MONA MO3 EV targets a significant market, supporting sales growth despite potential margin compression, with encouraging initial response.
  • Aggressive international expansion, particularly in Europe, and strategic partnerships, such as with Volkswagen, are key growth catalysts for XPeng.
  • XPeng’s financials show improving vehicle margins and a strong cash buffer, with potential for positive free cash flows and significant upside in 2025 and beyond.

Electric Car Charging

3alexd

Initiating Coverage

I am initiating coverage on XPeng (NYSE:XPEV) stock with a “Buy” rating and an investment horizon of 24 months. I believe that there are challenges that the company needs to address. However, the business developments


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