XPEV Stock Alert: Xpeng Gets Ready to Expand Key Driving Software

  • XPeng (XPEV) stock is moving lower today, despite a key catalyst.
  • The company announced that it will be rolling out its driver assistance software to all major Chinese cities.
  • This rollout is expected to take place by 2024 and could provide a competitive edge for the electric vehicle (EV) maker.
The Logo of Chinese electric vehicle manufacturer Xpeng (Guangzhou Xiaopeng Motors, also known as XMotors.ai) on tablet. XPEV Stock
Source: Koshiro K / Shutterstock

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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

Article printed from InvestorPlace Media, https://investorplace.com/2023/03/xpev-stock-alert-xpeng-gets-ready-to-expand-key-driving-software/.

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