China-based XPeng (NYSE:XPEV) manufactures and sells electric vehicles, and the data indicates XPeng is on a positive trajectory in terms of EV deliveries. At the same time, XPeng stock is out of favor among investors. This mismatch between sentiment and reality sets up a terrific buying opportunity that probably won’t last long.
Yes, there are trade tensions between the U.S. and Chinafears over which have already been factored into the XPeng share price. It seems like the market doesn’t care about XPeng’s positive points, so I encourage you to think for yourself instead of following the irrational crowds.
XPeng Makes a Splash With Self-Driving Vehicle Software
In the U.S., commentators love to talk about Tesla’s (NASDAQ:TSLA) autonomous/self-driving technology. Yet, in China at least, there’s a competitor that’s threatening to steal market share from Tesla.
I’m referring to XPeng, of course. XPeng is making a splash because, according to the South China Morning Post, the company is the first mainland China “carmaker to make a semi-autonomous driving system operational nationwide.”
XPeng’s answer to Tesla’s Full Self-Driving software is called the X NGP (XPeng navigation guided pilot) advanced driver assistance system. Just recently, XPeng expanded the use of this system to “all cities in mainland China.”
XPeng’s X NGP ADAS has the features you would expect from robust self-driving vehicle software. It enables vehicles to recognize traffic lights, “turn, change lanes and overtake other vehicles,” for example.
So, keep an eye out for XPeng as the company dares to compete against Tesla in this crucial EV-tech market.
Another Month of EV-Delivery Growth for XPeng
It’s baffling to see XPeng stock get stuck in neutral this year. After all, XPeng just celebrated its fifth consecutive month of month-over-month and year-over-year vehicle-delivery growth.
XPeng delivered 11,145 vehicles in July, up 4% month-over-month and 1% year-over-year. By itself, those statistics aren’t mind-blowing. Yet, bear in mind that all of this is happening while the U.S. and China are effectively in a trade war.
The picture becomes brighter when we look at the bigger picture. During the first seven months of 2024, XPeng delivered 63,173 vehicles. That’s up 20% versus the comparable period from 2023.
Despite this impressive progress, XPeng stock basically went nowhere from April through July. So, there’s still an opportunity to grab a few XPeng shares and wait for the market to appreciate the company’s full potential.
XPeng Stock: Underappreciated and Underpriced
Why aren’t XPeng shares trading at $10 apiece or more? The answer is that the market’s sentiment is fearful, partially because of worries about international trade frictions.
Yet, XPeng is making a bold move into the autonomous-vehicle software sector. Plus, the company is demonstrating consistent EV-delivery growth.
Therefore, while it’s still below $10, feel free to take a small but high-conviction position in XPeng stock.
On the date of publication, David Moadel 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.
