Why Is Xpeng (XPEV) Stock Up 12% Today?


  • XPeng (XPEV) launched a new design platform called SEPA2.0.
  • The new platform can cut design time by 20% and increase research efficiency.
  • XPeng lost $2.5 billion last quarter and needed a reboot.
XPEV stock - Why Is Xpeng (XPEV) Stock Up 12% Today?

Source: Koshiro K / Shutterstock

Chinese electric vehicle (EV) maker XPeng (NASDAQ:XPEV) stock rose 12% over the weekend after it presented a “smart EV architecture” called Smart Electric Platform Architecture 2.0 (SEPA2.0) it says will drive its future production.

The company’s American depository receipts (ADRs) are set to open today, April 17, at a little over $11 each, adding $1 billion to the company’s market capitalization, which now stands at $9.5 billion. The other small Chinese players traded in New York — Nio (NYSE:NIO) and LI Auto (NASDAQ:LI) — also gained slightly.

Seeking Separation

The first car designed with the new system, the XPeng G6 Ultra Smart Coupe SUV, will be unveiled on April 18 in Shanghai. Xpeng said its new platform could be used for wheelbases from 1,800-3,200 mm (about 6-10.5 feet) and for a sedan, coupe, hatchback, wagon, SUV, MPV, or pickup truck.

There are other platforms like this already on the market. General Motors (NYSE:GM) says it is building future EVs off its Ultium platform. Ford Motor (NYSE:F) is working with the MEB platform developed by Volkswagen (OTCMKTS:VWAGY). XPeng claims its system will cut the time needed to develop a vehicle by 20% and increase research efficiency by 80%.

While XPeng is focusing on SEPA, rival Nio is focusing on battery swaps. Its latest version can swap out a battery in three minutes, maintaining the car’s range. Li Auto is focused on scaling production, delivering almost 21,000 vehicles last month. Our Louis Navillier has called Li the only Chinese EV maker investors need to own.

XPeng delivered just 22,000 cars in the whole fourth quarter, barely half the total of a year earlier. It lost over $2.36 billion, $1.37 per share, on revenue of $5.1 billion, ending the year with $2.1 billion in cash.

XPEV Stock: What Happens Next?

American investors who view the three luxury EV names as triplets need to adjust their view. The Chinese EV industry is vast and complex. It is also not limited to those stocks traded in New York.

On the date of publication, Dana Blankenhorn held no positions in stocks mentioned in this story. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.

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