$XPEV Betting On Technology
As it looks to compete with Tesla, Inc. (NASDAQ: TSLA) in the competitive Chinese EV market, XPeng Inc. (NYSE: XPEV) appears to be in an excellent position to gain more market share thanks to its new EV – G6 – whose deliveries will begin this quarter. With specifications and software rivaling the Tesla Model Y, XPEV is well-positioned to grow its revenues substantially this year – making the XPEV stock forecast extremely bright in 2023.
XPEV Fundamentals
Rivaling Tesla
In April, XPEV revealed its new EV G6 SUV coupe (G6) which is notable since it could be considered a TSLA Model Y competitor. Both EVs’ dimensions are nearly identical with a difference of only a few millimeters. Additionally, G6 has 292 horsepower making it more powerful than the model Y SR, but slightly less powerful than the model Y SR+. With these similarities in mind, the G6 model could provide XPEV with substantial revenues due to its status as a cheaper model Y alternative.
As things stand a standard model Y costs around $41 thousand, while G6 costs around $31 thousand. This disparity in price provides the G6 model with a clear market advantage over model Y which can be seen in the G6 recording more than 25 thousand preorders within 72 hours of reservations opening.
Another advantage the G6 has over the TSLA model Y is range. Model Y boasts an estimated range of 330 miles, while the G6 has a significantly longer range of nearly 469 miles. Given its features, the G6 could prove to be a major competitor to Model Y which could allow XPEV to gain market share in China.
Not only the G6 would be a strong competitor to Model Y in China, but it could also be a competitor in the European market as there are a few hints in the standard of G6’s construction that indicate that it might be sold outside of China. The first and most notable hint is its rigidity, which allows it to meet the highest safety standard in Europe and North America. The second is that its chassis was tuned by a German professional team which indicates that the G6 was designed to compete with EVs in outside markets.
Self Driving
As things stand XPEV is poised to gain another major advantage over TSLA due to the fact that it is currently monopolizing autonomous driving in China. Recently, some of XPEV’s vehicles gained access to XPEV’s new X NGP navigational software through a wireless update. This feature is available for some P7s, P5s, and G9s which may increase the sales of these models since X NGP is the only Chinese semi-autonomous driving system with approval from Beijing’s transport authorities.
By expanding its autonomous driving capabilities into Bejing, XPEV’s X NGP is now available in Guangzhou, Shenzhen, Shanghai, and Beijing, with plans to expand it to dozens of cities within this year. Based on this, XPEV appears to be on the right track to deliver on its plan to make all of its autonomous driving functions available to drivers across China by 2024. Given that Tesla’s FSD software is not approved in any Chinese province, XPEV has a major edge over the EV giant as it can effectively control the autonomous driving market in China.
XPEV Financials
According to its latest Q1 report, XPEV’s $9.8 billion in assets – $1.2 billion of which are in its cash balance. On the other hand, XPEV has $4.8 billion in liabilities. In terms of revenues, XPEV reported $587.3 million in Q1. However, the company only reported a gross profit of $9.7 million due to its cost of revenues standing at a staggering $577.5 million. At the same time, XPEV reported $390.5 million in operating costs. In this way, XPEV operated at a net loss of $340.2 million.
Technical Analysis
XPEV stock is in a neutral trend and is trading in a sideways channel between its support at $8.85 and its resistance at $11.69. Looking at the indicators, the stock is trading above the 200, 50, and 21 MAs which are bullish indications. Meanwhile, the RSI is neutral at 63 and the MACD recently turned bearish.
As for the fundamentals, XPEV stock just unveiled its G6 model, which is a TSLA model Y competitor, and its X NGP navigational software was recently approved in Bejing which makes it available in 4 Chinese provinces. Given these significant feats, XPEV could be on track to realize substantial revenues in Q3 which could reflect on the XPEV stock price.
XPEV Forecast
As is, XPEV stock is poised to reach new heights as a result of a couple of developments. The first was the unveiling of the G6 EV which is set to become a competitor for TSLA’s model Y. The latter development X NGP’s approval in Bejing which makes it available for use in 4 Chinese provinces. Since Tesla’s FSD software is yet to be approved in any province, XPEV holds a major competitive edge against the EV giant in the Chinese market which could add to its market share – leading to greater revenues in the coming quarters. Thanks to these two impressive feats, the XPEV stock forecast could be extremely bullish in 2023 and beyond.
XPEV Fundamentals
Rivaling Tesla
In April, XPEV revealed its new EV G6 SUV coupe (G6) which is notable since it could be considered a TSLA Model Y competitor. Both EVs’ dimensions are nearly identical with a difference of only a few millimeters. Additionally, G6 has 292 horsepower making it more powerful than the model Y SR, but slightly less powerful than the model Y SR+. With these similarities in mind, the G6 model could provide XPEV with substantial revenues due to its status as a cheaper model Y alternative.
As things stand a standard model Y costs around $41 thousand, while G6 costs around $31 thousand. This disparity in price provides the G6 model with a clear market advantage over model Y which can be seen in the G6 recording more than 25 thousand preorders within 72 hours of reservations opening.
Another advantage the G6 has over the TSLA model Y is range. Model Y boasts an estimated range of 330 miles, while the G6 has a significantly longer range of nearly 469 miles. Given its features, the G6 could prove to be a major competitor to Model Y which could allow XPEV to gain market share in China.
Not only the G6 would be a strong competitor to Model Y in China, but it could also be a competitor in the European market as there are a few hints in the standard of G6’s construction that indicate that it might be sold outside of China. The first and most notable hint is its rigidity, which allows it to meet the highest safety standard in Europe and North America. The second is that its chassis was tuned by a German professional team which indicates that the G6 was designed to compete with EVs in outside markets.
Self Driving
As things stand XPEV is poised to gain another major advantage over TSLA due to the fact that it is currently monopolizing autonomous driving in China. Recently, some of XPEV’s vehicles gained access to XPEV’s new X NGP navigational software through a wireless update. This feature is available for some P7s, P5s, and G9s which may increase the sales of these models since X NGP is the only Chinese semi-autonomous driving system with approval from Beijing’s transport authorities.
By expanding its autonomous driving capabilities into Bejing, XPEV’s X NGP is now available in Guangzhou, Shenzhen, Shanghai, and Beijing, with plans to expand it to dozens of cities within this year. Based on this, XPEV appears to be on the right track to deliver on its plan to make all of its autonomous driving functions available to drivers across China by 2024. Given that Tesla’s FSD software is not approved in any Chinese province, XPEV has a major edge over the EV giant as it can effectively control the autonomous driving market in China.
XPEV Financials
According to its latest Q1 report, XPEV’s $9.8 billion in assets – $1.2 billion of which are in its cash balance. On the other hand, XPEV has $4.8 billion in liabilities. In terms of revenues, XPEV reported $587.3 million in Q1. However, the company only reported a gross profit of $9.7 million due to its cost of revenues standing at a staggering $577.5 million. At the same time, XPEV reported $390.5 million in operating costs. In this way, XPEV operated at a net loss of $340.2 million.
Technical Analysis
XPEV stock is in a neutral trend and is trading in a sideways channel between its support at $8.85 and its resistance at $11.69. Looking at the indicators, the stock is trading above the 200, 50, and 21 MAs which are bullish indications. Meanwhile, the RSI is neutral at 63 and the MACD recently turned bearish.
As for the fundamentals, XPEV stock just unveiled its G6 model, which is a TSLA model Y competitor, and its X NGP navigational software was recently approved in Bejing which makes it available in 4 Chinese provinces. Given these significant feats, XPEV could be on track to realize substantial revenues in Q3 which could reflect on the XPEV stock price.
XPEV Forecast
As is, XPEV stock is poised to reach new heights as a result of a couple of developments. The first was the unveiling of the G6 EV which is set to become a competitor for TSLA’s model Y. The latter development X NGP’s approval in Bejing which makes it available for use in 4 Chinese provinces. Since Tesla’s FSD software is yet to be approved in any province, XPEV holds a major competitive edge against the EV giant in the Chinese market which could add to its market share – leading to greater revenues in the coming quarters. Thanks to these two impressive feats, the XPEV stock forecast could be extremely bullish in 2023 and beyond.
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