XPeng: Positive Outlook Backed By Robust Deliveries Growth

Summary:

• I maintain a “Buy” rating on XPeng due to expected deliveries growth and improved fundamentals driven by expansionary policies in 2025.
• XPeng’s Q3 2024 results showed a 16.3% increase in vehicle deliveries and positive gross and vehicle margins, indicating strong operational performance.
• XPEV’s robust cash buffer of $5.09 billion supports aggressive expansion plans, including entering 60 markets and launching four new models in 2025.
• Despite operating losses, XPeng’s technological advancements and focus on AI-driven smart car technology position it well for future growth and market penetration.

Reinitiating Coverage on XPeng

I initiated coverage on XPeng Inc. (NYSE:XPEV) with a “Buy” rating on October 10, 2024. Since that coverage, XPEV stock has remained subdued and trades 6.6% lower.

As I reinitiate coverage on XPeng, I

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