XPeng (NYSE:XPEV) recently announced a Hong Kong listing, highlighting its ability to dominate the China and Hong Kong market. XPEV stock has been up 88% over the past year and 3.3% up over the last month.
China is one of the hottest EV markets in the world. Countrywide, 10.88 million vehicles were sold between January and May, which is up 36% from the same period the previous year.
Despite the pandemic and the global chip shortage, nothing could stop the momentum of the EV industry and it has been attracting attention from investors. EV makers are in expansion mode and growing across the world.
I have always loved EV stocks and have been bullish on XPEV stock.
Despite the investor sentiment and chip shortage, the company managed to report impressive delivery numbers for the second quarter. Let’s take a look at 2 reasons you must hold on to XPEV stock.
A Closer Look at XPEV Stock
XPeng announced second-quarter delivery numbers, and they are impressive. It delivered 6,565 vehicles in June, which is a 617% increase year-over-year. Further, it delivered a total of 17,398 vehicles in the quarter, which is a 439% increase year-over-year.
The company delivered 4,730 P7s in June. Interestingly, it is the highest monthly delivery of P7 since its launch. XPeng has delivered 30,738 total vehicles year-to-date, a 459% increase year-over-year.
The delivery numbers reflect the growing popularity of P7 amongst the consumers in China. The company has already delivered more than 34,000 P7s and it is attracting more interest and wider appeal amongst the customers.
The company had anticipated deliveries between 15,000 and 16,000 vehicles for the second quarter but it beat the projections and delivered more than 17,000 vehicles.
This shows that XPeng has a higher possibility to beat revenue projections for the quarter.
While the popularity of P7 is growing, XPeng has already announced a shiny new model. It launched the G3i smart SUV, which is a facelift version of the G3 in China.
The car is priced in the range of RMB 149,800-185,800 post subsidies and the deliveries will begin in September 2021.
G3i has a stylish exterior design and is equipped with a powerful in-car operating system. It also has the strongest autonomous driving assistance system.
Its G3 was the best-selling SUV in China in the mid to high-end market for almost two years. It has received several upgrades since the launch and has more than 50 new functions as of today.
The G3i is targeted at the younger generation and has more than 50 interior and exterior color combinations. The G3 is already a huge success in the EV industry and the G3i will have to match the expectations of the consumers.
If the car is a success, it will take the sales and revenue of the company to new highs. XPeng also plans to launch the P5, which is a family-friendly smart sedan this year.
Despite the chip shortage and growing competition in the EV industry, there is no slowing the momentum of XPeng.
The Bottom Line on XPEV
XPeng has a lot working in its favor in 2021. It has made a strong mark in the EV industry and is constantly growing its customer base. With strong delivery numbers and a new model in the line, XPeng has a bright outlook.
I believe XPEV stock will go higher in the coming weeks as the company announces Q2 results. If the company manages to beat Analyst estimates, the stock will soar.
The company is making the right moves at the right time and it could generate high income for investors. If you own XPEV stock, hold on to them for the long term.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.