Automaker XPeng (NYSE:XPEV) is leading the electric vehicle market with strong fundamentals and impressive delivery numbers. The strong delivery numbers show the strong demand for EVs in the thriving market and it is a positive for all EV makers. XPEV stock is up 14% in the past six months and went from $38 in June to $55 in November.
Now exchanging hands at around $47, its got some room between current levels and the all-time high of $60 a share but it won’t be long for the company to hit another all-time high.
Let’s dig deeper into the impressive fundamentals and delivery numbers of XPeng.
Strong Deliveries Stoke XPEV Stock
EV makers may have struggled for semiconductors in the recent past but they are now getting enough to build the cars. XPeng reported November deliveries at 15,613, which is a 270% rise from the same quarter the previous year. The deliveries are much higher than those reported by rival EV makers.
In September, XPeng reported delivering 10,412 vehicles, which was a new record at that time. The company has made another record by delivering 15,000 cars last month. Rival Nio (NYSE:NIO) delivered 10,878 cars in the month.
XPeng expects deliveries of about 34,500-36,500 vehicles in the quarter after delivering 10,138 in October and 15, 613 in November. This means it will have to deliver close to 10,700 vehicles in December to meet the expectations. The current picture of the company shows that it will be able to meet the projections and may report a significant increase in the revenue numbers.
Further, in the third quarter, the company beat analyst estimates and reported a loss of 15 cents a share on sales of $888 million. It delivered 25,666 vehicles in the quarter, which is up 199% from the same quarter the previous year. The gross margin was 14.4% and the vehicle margin, which is the gross profit of vehicles sales was 13.6%.
G9 Ready to Go Global
XPeng recently launched G9 which is a smart SUV. G9 is equipped with designs and characteristics that are ideal for the international market.
The car has international safety design standards which means the company is eyeing the international market and is looking for global expansion. It will be the first car to have X-EEA 3.0 electrical architecture and XPILOT 4.0 driver assistance system. It is the company’s proprietary advanced driver assistance system.
With this car, XPeng will be able to showcase its technology and strong power. The car is only a glimpse into the future. How the car performs in the International market will speak a lot about the future expansion plans of the company.
Interestingly, XPeng not only managed to handle the semiconductor chip shortage well but also launched a brand new car while many other EV makers were struggling to meet the production demands. This makes a solid case for XPEV.
The Bottom Line on XPEV Stock
I think XPeng is in a growth stage and it has a long way to go. The EV market is growing at a rapid pace and EV makers will have to make strong, well-timed moves to meet the demand. XPeng has consistently proved its strength with impressive delivery numbers and will continue to do so in the coming year.
All in all, the company has strong fundamentals and a solid product range that meets the demands of users. 2022 will see the company entering new markets with its stylish new model, G9. There are several catalysts working in favor of XPeng and it will take the stock higher after the fourth-quarter results.
XPeng has been gaining ground in the competitive industry and I believe it will impress investors in the next quarter. XPEV stock has massive potential to grow and it could hit a new high in 2022.
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.