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The Xpeng (XPEV) Stock Price Has Fallen 56% YTD. Is the Firm a Buy?

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Updated 27 May 2022

Key points:

  • The Xpeng stock price has fallen 56% in 2022. Should you buy it?
  • The Chinese EV company has ambitious plans for the rest of 2022.
  • However, investors are adopting a wait and see attitude toward Xpeng.

The Xpeng Inc – ADR (NYSE: XPEV) stock price has fallen 56% in 2022 amid a broader selloff in global tech stocks. The Chinese electric vehicle manufacturer has released a series of videos documenting its journey known as #InsideXPENG, which has attracted significant attention from investors.

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Also read: The Best Electric Car Stocks To Buy.

The videos feature conversations with XPENG’s top executives, including Brian Gu, the Vice Chairman and President. The first few videos have seen Brian Gu explain the company’s future, including the launch of its flagship G9 SUV.

The G9 SUV is expected to have superior technology to other EVs currently in production since it will have the capacity to charge via an 800W charger. Hence, it can charge its battery to a capacity supporting a 200km journey in 5 minutes.

Investors were impressed by the new SUV’s capabilities, with XPEV planning to launch the vehicle in Q3 2022. The company plans to ship the vehicles in Q4 2022 following a successful launch.

The Chinese EV company also revealed supply chain elasticity since it had stockpiled many of the critical components needed to keep producing its vehicles and sourcing its parts from different suppliers.

Still, the markets are not entirely convinced that Xpeng will pull off its ambitious plans following its Q1 results. It recorded a slightly lower loss than expected but issued downbeat full-year earnings guidance, triggering a further selloff in its stock price.

Therefore, it is clear that investors are waiting to see if Xpeng’s delivery numbers improve this month, indicating that the company is on track to hitting its lofty goals. Until then, XPEV shares are likely to remain under pressure.

XPEV stock is currently trading above the long term support level at $18.23. A break below this crucial support level would invalidate the bullish thesis.

*This is not investment advice. Always do your due diligence before making investment decisions.

XPEV stock price.

XPENG stock price 27-05-2022
Source: Tradingview

The XPEV stock price has fallen by 56.13% in 2022. Is the stock about to bottom?