Xpeng Stock Looks Great as EV Maker Overcomes Supply-Chain Issues

  • Xpeng (XPEV) is about to post its highly anticipated quarterly earnings results.
  • However, the company has already released some data that indicates powerful growth.
  • Investors can buy or hold Xpeng shares as the company apparently has no difficulty delivering its smart vehicles.
Image of Xpeng's (XPEV) G3 electric SUV outside a mall in China
Source: Johnnie Rik / Shutterstock.com

China-based smart electric vehicle (EV) maker Xpeng (NYSE:XPEV) is a contender in a crowded field, during a time of Chinese Covid-19 lockdowns and supply-chain problems. Still, it’s fine to buy or hold XPEV stock because Xpeng is on the fast track to impressive revenue generation.

Here’s a date to mark on your calendar. Xpeng plans to release its first- quarter 2022 unaudited financial results on May 23. So, should worried investors divest their shares prior to the earnings event?

It might be tempting to do that, since XPEV stock has been on a downward trajectory for a while. However, panic-selling isn’t necessary as Xpeng has some startling stats for you, even before the earnings event takes place.

XPEV Xpeng $23.77

What’s Happening with XPEV Stock?

Admittedly, this is a tough time to be an Xpeng investor. After topping out at $56.45 late last year, the stock price headed toward $20 not long ago.

Most likely, supply-chain woes are to blame for this stock-price downturn. There are also Covid-19 lockdowns in China to consider.

However, at least one expert on Wall Street doesn’t seem to be overly concerned about Xpeng’s future. Indeed, Deutsche Bank analyst Edison Yu reiterated a “buy” rating for XPEV stock, and even issued a highly ambitious $55 price target.

In defense of this share-price objective, Yu cited Xpeng’s “robust order book, supply-chain resilience, and advanced consumer grade autonomous driving capability (XPILOT 3.5 with Lidar).”

Can’t Deny the Results

Yu certainly pointed out some powerful bullish catalysts for Xpeng. Nevertheless, skeptical investors might want to see some hard data, even prior to the upcoming earnings release.

No problem — Xpeng recently disclosed its vehicle results for April 2022. Even the staunchest skeptics would be hard-pressed to deny the eye-opening data that Xpeng provided.

If you can believe it, Xpeng delivered 9,002 smart EVs in April, up 75% year-over-year. Not only that, but the company’s year-to-date total deliveries, as of April 30, reached 43,563, up 136% on a year-over-year basis.

Those are terrific stats, especially considering the challenging conditions. Xpeng acknowledged “the COVID situation, which in turn is affecting the overall supply chain, manufacturing and transportation of automobiles in China,” yet still managed to produce outstanding delivery figures for April.

What You Can Do Now

It’s fine if you’re not on board with Yu’s $55 price target for XPEV stock. At the very least, however, investors should consider Xpeng’s vast improvement in smart EV deliveries.

Therefore, you can choose to buy or hold Xpeng shares even if you’re concerned about the upcoming earnings report. Whether it’s a beat or a miss, there’s no denying that as an EV-market contender, Xpeng is accelerating fast.

On the date of publication, David Moadel 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.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

Article printed from InvestorPlace Media, https://investorplace.com/2022/05/xpev-stock-looks-great-as-ev-maker-overcomes-supply-chain-issues/.

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