One of the more impressive movers in today’s market has been Xpeng (NYSE:XPEV). Despite rather bearish price action overall, shares of XPEV stock are up more than 5% in early afternoon trading.
This move comes on the heels of commentary from the company’s President Brian Gu today. The company now expects a big rebound in sales during the second half of the year. This rebound is expected to be driven by the company’s G6 pure electric crossover, for which Gu said the company has received a “significant” number of orders.
Investors appear to be taking Gu at his word, bidding up shares of XPEV stock to a greater degree than the company’s peers. Overall, demand appears to remain strong for the sector, suggesting the pie could be perhaps increasing faster than companies can grab a slice right now.
Let’s dive into what investors may want to make of this big move today.
Is XPEV Stock Worth a Buy at These Levels?
Xpeng is one of the major Chinese EV makers investors may have lost focus on in recent years. Indeed, 2022 wasn’t kind to Xpeng — or any of its EV peers for that matter. The Chinese market became a difficult one for foreign investors to buy into. And geopolitical concerns have continued to weigh on international capital flows, as many investors appear to prefer to keep their dollars closer to home.
That said, the past month has been a good one for Xpeng investors. The company’s recent commentary supports a growth story many investors can get behind. And with a valuation that makes a lot more sense than where shares traded a couple years ago, there’s a fundamental case to be made for this company here.
On a relative basis, Xpeng looks much more attractive than peers such as Tesla (NASDAQ:TSLA) or Nio (NYSE:NIO). That said, those companies’ brands and market power are enviable. Thus, investors have many options to choose from, and many may look at Xpeng as a trading vehicle more than a long-term investment.
Personally, I think Xpeng’s G6 SUV is intriguing and deserves the attention it’s getting right now. We’ll have to see if this rally can continue. But this is a stock I think many long-term investors should at least have on their radars right now.
On the date of publication, Chris MacDonald 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.
