In the race to dominate the global electric vehicle (EV) market, U.S. investors appear content on continuing to place their faith with incumbent Tesla (NASDAQ:TSLA). That said, there are a number of other emerging international EV players catching investors’ attention, including Chinese EV maker XPeng (NYSE:XPEV). However, XPEV stock is dipping lower today, despite some rather intriguing news.
Specifically, XPeng announced plans to move forward with pushing its driver assistance software to every Chinese city by 2024. Given the company’s strong presence in the country, this move may create a competitive moat around its business.
Let’s dive into what this news means for investors in the EV space.
XPEV Stock Sinks Despite Promising News
Other rivals, including Tesla, have launched their vehicles with driver assistance technology in other markets. However, Tesla’s so-called full self driving (FSD) software package is essentially Level 2 driver assistance technology. Thus, XPeng’s ability to put out a competitive product could entice buyers to its ecosystem.
With Chinese regulators seemingly ready to assist home-grown companies in achieving greater domestic market share, this could be a very bullish catalyst for XPEV stock. XPeng’s XNGP product is currently available in certain Chinese markets. That said, the rollout of this technology to other cities could enhance the company’s allure to buyers across China.
With the Chinese EV market being the largest in the world, this is a big move that I’m surprised isn’t getting more attention. XPEV stock was already on my radar. Today, though, I’ve elevated it toward the top of my list on this news.
On the date of publication, Chris MacDonald did not hold (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.