Electric Vehicle maker Xpeng (NYSE:XPEV) stock has become the talk of the town for good reason.
The company is one of the top EV makers in China and has reported stellar delivery numbers.
XPEV stock is proof that the company is doing something right. The stock went from $34 last month to $45.90 today.
However, it is trading much lower than its all-time high of $74, which means there is ample growth opportunity and a good chance for investors to enter. Let us dig deeper into my bullish thesis for XPEV stock.
A Flying Car in 2024?
EV makers are known for the technology they use and this is what sets them apart in the industry. XPeng is pushing tech innovations and is consistently working on new models and technology. It unveiled the P5 past summer and is expected to unveil a new car this year.
However, XPeng showed off a flying car at the annual Tech Day last week. The announcement was made by HT Aero which is an affiliate of XPeng. This car can drive on the road like a normal car and fly in the air. There are plans to mass-produce the car by 2024. It will cost close to $157,000, and I am certain there will be buyers.
The company also discussed superchargers at the event. It has more than 400 supercharging stations in China and plans to expand them. The management claims that the superchargers will only need five minutes to charge the battery and run for 125 miles.
XPeng will debut the new SUV, G-7 next month which is based on its current electric sedan, P7.
With the flying car, the company has gone ahead of its competitors, and if all goes well, it will launch it sooner than any other. The market for flying cars could be huge across China and Europe and it could give XPEV stock massive growth potential.
Expect Solid Q3 Results
XPeng has ended the third quarter with strong delivery numbers. It exceeded 10,000 deliveries a month for the first time in September and this is despite the ongoing chip shortage.
The company delivered 10,412 vehicles in the month and 26,000 vehicles in the quarter. This is more than the expected deliveries of 22,000 vehicles in the quarter. It will have an impact on the bottom line and we will see revenues hitting a new high.
In the second quarter, the company reported a loss of 23 cents and revenue of $582 million.
I believe the company will report solid third-quarter results and it will take the stock higher. XPeng hasn’t failed to impress investors with the strong year-on-year growth.
It is also narrowing losses significantly. As the demand for EVs remains hot in China, XPeng will continue to report strong delivery numbers and hit record-high revenue.
The Bottom Line on XPEV stock
I love EV stocks and believe they are the future. We will see several EVs on the road in the coming years and this is when holding XPEV stock will make all the difference. The company is in the growth stage today but there is massive potential.
The market is huge and it is emerging. Further, the company has already marked its presence across Norway and can eye expansion to other countries in the future. The delivery numbers are proof that customers love their XPEV cars and there is stellar demand.
The company’s fundamentals are strong, and it is narrowing losses with each quarter. I also believe XPeng will become profitable sooner than its competitors in the industry.
As long as there is demand for EVs, XPeng will continue to impress investors. The third-quarter results and the launch of a new model will work as catalysts for the stock.
XPEV stock is the one to buy and hold. It will reap solid returns in 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.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear stock analysis.
