Chinese electric vehicle (EV) maker XPeng (NASDAQ:XPEV) signed dealer agreements to sell its cars in Hong Kong and Macau. The announcement sent XPEV stock up 9% on April 9, but it fell back 1% overnight.
It’s the company’s first move within China but beyond the mainland.
XPEV stock opened in New York on April 10 at about $8 per share, a market capitalization of $8 billion. The stock is down 45% so far in 2024.
Baby Steps
While analysts approved of the move, it won’t solve XPeng’s competitive problems. That’s because BYD (OTCMKTS:BYDDF), Great Wall Motors, and state-owned SAIC are already doing business there.
But XPeng is also moving beyond China entirely. It has partnership deals with car dealers in Malaysia and Thailand. It entered the German market with the G9 SUV and the P7 sedan. The moves into Macau and Hong Kong are also being done through distributors. They’re all part of XPeng’s broader plan to expand into global markets, including France, Italy, and the U.K.
XPeng delivered 9,026 EVs in March and 21,821 for the full quarter, up 21% from the previous year.
The company produced fewer cars in February as it retooled its factory for new models.
XPeng has been cutting prices in the face of domestic competition. Its best-seller is the G6, an SUV that currently sells for 189,900 CNY, about $26,250. That’s with a special discount of $2,500 that is being extended month-to-month.
In addition to its electric cars, XPeng has also shown off a flying car, an EV with a flying module that separates and combines. Its vertical take-off and landing (VTOL) craft, the Voyager X1, is on its fourth iteration.
At TipRanks, XPeng currently has 13 analysts, and while eight are telling clients to buy, two have the sell light out. Speculators at Stocktwits remain optimistic about the stock.
XPEV Stock: What Happens Next?
The Chinese move to export EVs is just getting started. It is putting pressure on the stocks of all EV makers in China, the rest of Asia, Europe, and the U.S.
On the date of publication, Dana Blankenhorn 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.
