Electric vehicle maker Xpeng (NYSE:XPEV) stock has made its presence felt in the ever-expanding market.
One cannot underestimate the tremendous growth of the EV industry and XPeng is one of the strongest players today.
With countries committing towards the betterment of the environment, the growth potential for EV makers is enormous. XPeng is on an expansion spree and has already made its mark in the International market.
XPEV stock is up 14% over the past six months and more than 3% in the past five days. I am bullish on XPEV stock and strongly believe that it has the potential to soar higher.
It could hit $50 after announcing Q2 earrings. XPEV stock is currently exchanging hands at $40. The stock is a buy before the results. With that in mind, let us take a look at two positive developments that can push the stock higher.
Manufacturing Expansion
XPeng recently signed an agreement with Zhaoqing Municipal Government and the Zhaoqing High Technology Industry Development Zone in Guangdong Province to build the Phase Two electric vehicle expansion project.
Aimes at boosting the company’s annual EV production capacity, this agreement will take the production capacity from 100,000 units to 200,000 units per year with the support of the local government.
China is giving strong support to EV companies with subsidies that encourage domestic production. XPeng has impressed investors with strong delivery numbers and stellar year-over-year growth. The company has delivered 38,778 vehicles year to date and has already beat the Q2 vehicle delivery projections and the revenue will showcase the same.
Interestingly, the company has a massive production capacity and an ability to scale. With growing demand, it will be able to meet the demand of the customers.
The manufacturing expansion is proof that there is demand for its EVs and the company has major plans for the future. I believe the company will be able to report strong growth in a short tenure which will take XPEV stock higher.
Xpeng has officially made its mark in Norway with the first shipment of P7 EVs. The company intends to expand further into Europe in the future. It made the first move into Europe with the G3 SUV in 2020 and has now begun loading up the P7 EVs for Norway.
With this, the company will have its second EV model available out of China. This is the first time that P7 will reach a market outside of China. Expansion in the international market is crucial for EV makers to generate higher revenue.
Norway is one of the top markets for EVs and XPeng has made the right move by starting its international expansion from there.
It shows that the demand for XPeng cars is growing across Europe and building a strong presence in Norway will help the company expand to other countries over time.
The Bottom Line on XPEV Stock
XPeng is on an expansion spree which is a clear sign that there is a growing demand for its cars. A company will only expand the production facility when it is confident of selling the cars.
XPEV stock will rise once the company reports Q2 results on Aug. 26.
XPeng has proved its strength time and again and it is one company that has managed to have a stronghold despite the growing competition and chip shortage. I believe the stock has the potential to generate high returns for investors.
All in all, the fundamentals look good, the delivery numbers are impressive and the company is taking giant leaps towards the expansion of the facility, trying to meet the growing demand from customers.
Load up on XPEV stock before it hits a new high this year.
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.
