Xpeng Inc: The Tesla Challenger From China

Dealing with new companies on the stock market is a particularly thrilling endeavor. Next to the non-existent stock information, there is often also little information on the company's financials, as disclosure requirements are often not requested from private companies, depending on the respective legislative environment. Of course, that impairs our ability to make sound assessments on the company's stock development, but it can also bear massive winning potential. One of those newbies on the stock market is Xpeng Inc. (XPEV), or Xiaopeng Motors. The Chinese electric vehicle manufacturer, founded in 2014, went public in August 2020, raising about $1.5 billion through its IPO. After a stable stock price development in its first two months, the stock price literally skyrocketed in November, increasing over 270% in 3 weeks. Since then, the price has halved again, raising questions about the true value of the company.

Photo by Erik Witsoe on Unsplash

Since the electric vehicle market is a very forward-looking sector, which almost everyone ascribes a bright future too, it is worth having a closer look at Xpeng. Some already argue that Xpeng is somewhat "the next Tesla" because of its recent stock price surge and because its cars are very futuristic. Currently, the Chinese carmaker offers two models: the G3 and P7. The G3 is Xpeng's so-called "smart SUV" and retails just above $30.000 after subsidies for its most exclusive version with a total range of 520km. Its basic model is available already for around $22.000. This price tag alone is a competitive advantage to other electric SUVs and does not fall short on the technical side, either. However, Xpeng's ace is its P7 sedan, a highly advanced autonomous driving software. Within the first 25 days of implementing its newest version in January 2021, P7s have driven over accumulated 1 million kilometers autonomously across China – without accident! That alone speaks for the innovative power of this company. After hearing about that number, the advanced voice control system, battery safety standard (surviving 17 tests), and driving range of over 700km do not come by surprise. Between $35.000 - $54.000 retail price (after subsidies) depending on the model, the luxury sedan does not only compete at the top of the technical field but also in the pricing field.

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