2 Top Reasons to Buy Electric Vehicle Stock XPeng

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XPeng - 2 Top Reasons to Buy Electric Vehicle Stock XPeng

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Electric vehicle stocks like XPeng (NYSE:XPEV) are accelerating this morning. At the moment, XPEV stock is up about 4.4% to $30.50. All after the company announced solid delivery results for March 2022, and for the first quarter of the year.

For March, XPeng delivered 15,414 vehicles — a 202% jump year over year, and 148% increase over February. Vroom! Vroom!

For the first quarter of 2022, deliveries reached 34,561, a 159% increase from the same time last year. Even better, as of March 31, cumulative deliveries are up to 172,514.

With this kind of momentum, I don’t see numbers dropping any time soon.

Electric Vehicle Sales Growth is Only Accelerating

After all, global demand for electric vehicles is on the rise.

Global governments want millions of EVs on the roads, as of yesterday, and automakers are starting to transition to all-electric.  Analysts expect by 2030, the world will see 125 million EVs on the road, as noted by CNBC contributor Tom DiChristopher. General Motors says it plans to stop sales of internal combustion engines by 2035.

Also, according to NBC News’ contributor Paul A. Eisenstein, “The auto industry is shifting from internal combustion technology to emissions-free battery and hydrogen powertrains.”

Analysts Seem to Love the XPEV Stock, Too

With a “buy” rating, Citi analyst Jeff Chung reiterated XPEV as a top pick following recent earnings results, according to TheFly.com. The analyst also holds a positive view on the company’s April deliveries, and says its order backlog is still strong.

HSBC analyst Yuqian Ding also initiated coverage of XPeng with a “buy,” with a $37 price target.

As also noted by TheFly.com, “The analyst says XPeng’s latest autonomous driving system is one of the best available in China, enabling autonomous pilot driving on highways.” 

Technically, if XPEV stock can break above prior resistance around $30.95, I believe the EV stock could test $35 a share, near-term. It currently trades around $30.50. Longer-term, I’d like to see XPEV stock again challenge $50 a share.

 On the date of publication, Ian Cooper 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.  Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.


Article printed from InvestorPlace Media, https://investorplace.com/2022/04/2-top-reasons-to-buy-electric-vehicle-stock-xpeng/.

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