Electric vehicles are in demand and the Chinese electric vehicle player, Xpeng (NYSE:XPEV) is making the most of it. XPEV stock is enjoying the increased interest in EVs and it has become a strong player in no time.
XPEV stock was roughly flat for most of 2021 but it has started the year on a good note. The stock was trading close to $41 same time last year and it is at $45 today.
However, the 52-week high of the stock is $60, much higher than the current levels. I strongly believe that Xpeng is positioned to hit all time high in the coming months.
With that in mind, let’s get into what is working for the automaker.
Xpeng is breaking the records with consistent deliveries. It delivered 16,000 smart EVs in December and broke the benchmark of 15,000 units for another month consecutively. Despite the semiconductor chip shortage, Xpeng managed to hit new highs in deliveries each month. December deliveries showed 181% increase from a year ago.
This is a clear sign of the company’s strength and execution capability. The deliveries consist of more than 7,000 P7 sedans and more than 5000 P5 sedans. Rival Nio (NYSE:NIO) delivered 10,489 vehicles in the month and 25,034 vehicles this quarter. Xpeng has overtaken its rival in deliveries.
Total deliveries for the quarter stood at 41,751, which is a 222% increase from a year ago. Deliveries for the year hit 98,155, an increase of 265%. XPeng’s cumulative deliveries reached 137,953.
The company projected the fourth-quarter deliveries to be between 34,500 and 36,500 but it managed to hit a much higher number. We will see an impact on the bottom line and I am certain the company will beat analysts’ expectations for the fourth quarter. Once the company reports the fourth-quarter results, XPEV stock will soar.
Expansion of the Product Portfolio
Xpeng will manage to continue with the delivery growth this year and its wide product portfolio will allow the company to attract more customers. The company is constantly working to expand the model portfolio and has recently launched a sedan P5 and announced G9, an SUV that will be available this year.
Even with the current product range, Xpeng is reporting solid numbers. Once it adds more models, it will be able to increase production and deliveries. This is also a sign that customers prefer XPEV cars and the demand is high. If not for the chip shortage, the company would have managed to report even better numbers in this quarter.
Additionally, the company is expanding across Europe and has plans to enter the market in Denmark, the Netherlands and Sweden. Having captured a large market in China, Xpeng is ready to soar higher. With a wider customer base, it will be able to expand the margins further and report higher revenue.
The Bottom Line on XPEV Stock
All in all, Xpeng is a great EV company with solid potential to grow across new markets in China and Europe. The company has proved its worth time and again with the strong delivery numbers and it will continue to do so in 2022.
The fourth-quarter results will reflect the company’s strength and the ability to meet the growing demand across the market. It is already reporting better deliveries than its rivals and 2022 could be the best year for XPEV stock.
Despite the competition in the industry and the pandemic, Xpeng is constantly growing and is expanding across all fronts. I believe XPEV stock will hit the $60 mark very soon and it is time to load up on the stock.
If you are looking for a great EV stock for the long term, XPEV is the one.
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.