Xpeng or Xiaopeng Motors (NYSE:XPEV) is a Chinese EV mobility company that aims to become the largest player in the burgeoning EV market over the next few years. The company is backed by the crème de la crème of the Chinese tech fraternity, including Alibaba, Xiaomi, and Foxconn, and the biggest Middle Eastern sovereign wealth funds including Qatar Investment Authority and Abu Dhabi’s Mubadala.
In late August this year, the company listed on the New York Stock Exchange. The IPO was an instant success with XPEV shares climbing nearly 40% on the first day. The company is one of many EV companies that have found major stock market success as a flurry of tech-hungry investors hunt for the next Tesla.
Xpeng project implementation
The company’s current flagship product is the P7 sedan which aims to directly compete with the Tesla Model 3 in China.
Unlike many new EV companies, Xpeng both designs and manufactures their products instead of outsourcing production to legacy auto companies.
The company produces the P7 at its new plant located in Zhaoqing, in the Guangdong province. The company constructed the factory from scratch in a record 15 months and crossed the 10,000 unit production mark in just 160 days.
Recently, at a ceremony in Zhaoqing, Chairman He Xiaopeng said: “Today sees us achieving the 10,000th unit production target earlier than expected. We delivered on our promise to bring high-quality smart EVs to meet our customer demand. The completion of 10,000 P7s reinforces XPeng’s position as a leading smart EV brand, demonstrating its strong capability in supply chain management, smart manufacturing, and quality control.”(BusinessWire)
Xpeng and the domestic Chinese market
One of Xpeng’s unique advantages is its domestic status in China.
With the rise of climate awareness and government action on climate change, EV’s are being touted as the next big revolution in global mobility. Furthermore, the Chinese government has made clear its intentions of making China the most dominant force in EV’s.
Domestic Chinese companies are also aided by the sheer yet growing size of the domestic EV market and massive lithium-ion supply chain setups by CATL and BYD who manufacture nearly a third of global lithium-ion cell supply. (CNBC)
Recently, Foxconn, a major supply chain vendor to the world’s biggest tech conglomerates announced its EV software and hardware platform solutions for deployment by EV companies in their vehicles. (MotorAuthority)
Over the past few months, the market has seen new EV stocks list and go parabolic. Unfortunately, most of that bullishness may be attributed to speculation – these are companies that have yet to commence deliveries and production.
Xpeng differentiates from other EV manufacturers
Xpeng has successfully managed to stand out from the new crop of EV manufacturers because it has established a track-record of scaling its production and meeting targets.
The company is also in the process of expanding its product portfolio to cater to a much larger audience.
Hence, the XPEV stock might be one of the best options, other than Tesla, for investors looking to join the EV bandwagon.