After reporting disappointing earnings for Q3, XPeng (NYSE:XPEV) is off to a better start this week. The Chinese electric vehicle (EV) producer has made significant progress this month, but now investors have another reason to bet on it. XPeng recently unveiled its newest Smart EV model, the XPeng X9, which can seat seven passengers. This multi-purpose vehicle ( ) is one of the stars of Auto Guangzhou 2023, an international event that draws crowds from across the globe. Its starting price is RMB 388,000, equal to roughly $54,000. Momentum for this highly anticipated new vehicle is helping push XPEV stock up today after its release on Friday, Nov. 17.
For investors, opportunities to profit in China’s fast-growing EV market are still abundant, as the auto show demonstrates. Sales may be slowing in the U.S., but these recent innovations show that Chinese automakers are as focused as ever on scaling production and rolling out new models.
What’s Happening With XPEV Stock
Many of XPeng’s rivals were present at Auto Guangzhou 2023, including Li Auto (NASDAQ:LI) and industry leader BYD Company (OTCMKTS:BYDDF). The latter rolled out its the Sea Lion 07, an EV rumored to rival Tesla (NASDAQ:TSLA)’s Model Y. But neither company’s gains today have come close to XPeng’s. As of this writing, XPEV stock is up 9% for the day. LI, by contrast, is up less than 3%.
XPeng has high hopes for the X9, seeing it as ushering in the next era of electric seven-seat MPVs. According to a statement released by the company, it comes with “China’s only car model equipped with intelligent double-chamber air suspension as standard” as well as active rear-wheel steering. XPeng Chairman and CEO He Xiaopeng issued the following statement:
“The X9 exemplifies our dedication to innovation as we strive to make XPENG’s industry-leading smart EV technology and state-of-the-art design craftsmanship appealing to a wider range of progressively individualized consumer needs. In the face of an increasingly competitive NEV market, we are unwavering in our commitment to delivering next-generation, Smart EV experiences through our full-stack in-house technology development, smart manufacturing and comprehensive sales and service network.”
The Road Ahead
Additionally, XPeng is rolling out the X9 at an excellent time. China’s EV market is expected to continue expanding at a compound annual growth rate (CAGR) of almost 6.4% over the next five years. China has also been taking steps to build out its EV charging infrastructure. This will put companies like XPeng that produce mid-price EVs that appeal to families in an excellent position to keep growing.
It’s true that the road to success hasn’t been completely smooth for XPEV stock. But as InvestorPlace contributor Chris MacDonald notes, the company has a proven history of innovation and investors should trust its process. The release of the X9 further demonstrates that XPeng can help lead the charge as China’s EV market continues to grow.
On the date of publication, Samuel O’Brient 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.