XPENG

Analysis of XPeng share price

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Do you want to invest in the Chinese technology sector by buying XPeng stock? In this case, we propose you our help to realize quickly but also efficiently your analysis of this value with useful information about this company. You will discover here the details of this group's activities as well as a presentation of its competitors on the market or some examples of recent partnerships. We will also explain how to perform a fundamental analysis of this stock and what are its advantages and disadvantages.

Elements that can influence the price of this asset:

Analysis N°1

Of course, we will have to follow the release of new vehicles by the XPeng brand on the market with their presentation and a comparison with competing vehicles.

Analysis N°2

XPeng's international expansion strategy in order to conquer international markets will also have to be closely analysed as the group is currently marketing its products mainly in Asia.

Analysis N°3

It is also important to keep an eye on the competition in this sector and on the major publications of its main players that may have an influence on XPeng's activities.

Analysis N°4

The strategic partnerships that XPeng has put in place to create new technological innovations can also influence this value and you should take this into account.

Analysis N°5

Lastly, the group's annual and quarterly results should also be monitored and compared with analysts' expectations and with the objectives set out in the strategic development plans.

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General presentation of XPeng

We will now take a closer look at XPeng and its activities. Indeed, it is important to have a good knowledge of this company and its activities in order to understand its future economic stakes.

XPeng Group Inc. is a Chinese company specializing in the automotive and technology sector. The company is dedicated to the design, development, production and sale of intelligent electric vehicles.

The company's products include a type of sport utility vehicle called G3 and a type of four-door sport sedan called P7. The company markets these products under the brand name Xpeng.

But the group also provides a wide range of services to its customers, including a supercharging service, a maintenance service, a towing service and a vehicle rental service. XPeng currently employs 5,084 people and generates all of its sales in China.

Analysis of XPeng share price
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The major competitors of XPeng

After having learned about the activities of the XPeng group, we are going to look at its sectorial environment and more precisely at its main competitors on the market. Indeed, this Chinese electric car manufacturer is not the only one on this market and has to face some major opponents, including :

Tesla 

The group formerly known as Tesla Motors is an American car manufacturer specializing in electric vehicles. It was founded in 2003 and offers innovative electric cars for the general public with innovative on-board technologies. Recently, the Tesla Group has also diversified into energy solutions, including stationary batteries for the residential and industrial sectors. Since its merger with SolarCity in 2016, it also offers photovoltaic panels and tiles.

NIO 

This other manufacturer, Chinese this time, specializes in the design, production and sale of high-end electric vehicles. Founded in 2014, its expertise includes innovation and cutting-edge connectivity, autonomous driving and artificial intelligence technologies. The group opened its first production line in 2018 and has since distributed over 70,000 vehicles. It plans to produce up to 150,000 vehicles in 2020.

Li Auto

Finally, the third largest competitor to XPeng is the Chinese car manufacturer Li Auto, which is another leader in the electric vehicle market. The group designs, produces and markets electric vehicles and specializes in high-end off-road vehicles incorporating smart technology and autonomous solutions. But unlike other competitors, it produces hybrid vehicles that also use gasoline.


The major partners of XPeng

After having reviewed XPeng's competition, we propose to discover who its strategic allies are with two recent examples of partnerships that have supported its business and its stock.

Alipay

First of all, the XPeng group recently signed a partnership agreement with Alipay for the joint development of in-car payment features. The aim of this device is to allow drivers to make payments directly from their dashboard. But in reality, this new agreement is an extension of a partnership already announced in September 2020 between Alibaba and XPeng for the development and implementation of the Alibaba in-car Mini App platform in the automaker's P7. Under this agreement, drivers' XPeng ID account, Alipay account and Alibaba in-car Mini App platform applications are going to be connected from the second quarter of 2021.

Livox

 Also in 2021, XPeng has also signed another strategic partnership, this time with Livox which is a leading lidar manufacturer. The goal of this partnership is to deploy its automotive grade lidar technology in its new production model in 2021. Livox thus becomes XPeng's first partner in lidar technology. Livox has customized its Horiz sensor for XPeng to meet automotive quality requirements, but also to provide cost effectiveness and reliability for production models. The implementation of lidiar in the XPilot architecture which is Xpeng's autonomous driving system will further enhance XPilot's safety and its ability to cover a full range of driving scenarios. XPeng's new 2021 production model will thus be the world's first mass-produced intelligent electric vehicle equipped with lidar which will further strengthen XPeng's leading position in intelligent EV technology.

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The factors in favour of a rise in the XPeng share price:

It is also interesting to know the advantages and disadvantages of the XPeng share and therefore the strengths and weaknesses of this group in order to be able to understand how this company can accentuate its growth and face its major challenges in the future.

With regard to the advantages of this value and therefore the assets currently available to the XPeng Group, the following can be noted:

  • Firstly, the group enjoys the status of a major player in the Chinese market in the electric vehicle segment. Thus, as a representative of the industry and a key player in the emerging forces of electric vehicles, XPeng can launch influential electric car models every year.
  • It should also be noted that XPeng is one of the main manufacturers of electric vehicles in China, along with its competitor NIO, which we mentioned earlier.
  • It should also be kept in mind that Xpeng is offering rapidly evolving autonomous driving technology. Indeed, the group considers the development of autonomous driving as a real challenge and its main competitive advantage. With a research and development team of more than 300 people, the fast-updating autonomous driving system brings XPeng the favor of users and the capital market.
  • Finally, the development of self-production is another of its strengths. With the acquisition of Guangdong Foday Automobile, XPeng will replace the contract manufacturing mode with complete self-production. This Tesla-like manufacturing independence is unique compared to its Chinese competitors.
The factors in favour of a drop in the XPeng share price:

The XPeng group also has a few weak points, which are as follows:

  • Because of the regulations for electric vehicle production in China, startups are outsourcing production to third parties. XPeng has outsourced the production of its vehicles until 2020, and the sustainability of its products has come under criticism.
  • Finally, it is also worth noting that the company was weakened in 2020 due to the Covid crisis which penalized the entire automotive sector with a declining subsidy policy in China for renewable energy vehicles. Given that XPeng was then a start-up electric vehicle production company that cannot generate stable cash inflow and thus came under more pressure than traditional manufacturers.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

How to make a good technical analysis of the XPeng share?

To carry out your technical analysis of the XPeng share, you must first of all set up your charts properly in terms of periodicity and type of curve. It is then recommended that you select and display several technical indicators such as MACD, Bollinger Bands, RSI, Stochastic Indicators or Moving Averages as well as technical support and resistance levels.

How is the capital of XPeng distributed?

The capital of XPeng is partly owned by individual and institutional private shareholders, including Primavera Capital Group Ltd with 2.51%, Capital Research & Management World Investors with 2.06%, Capital Research & Management Global Investors with 1.82%, The Vanguard Group with 1.71%, Fidelity Management & Research with 1.68%, Coatue Management with 1.60%, Aspex Management with 1.24%, Robeco Schweiz with 1.07%, DST Global with 1.05% and Alibaba Group Holding with 1.03%.

How can I find out about future trends in the XPeng share price?

While it is not possible to know exactly where the XPeng stock will go, you can get signals of a rise or fall by performing several types of analysis on this stock. You can perform a fundamental analysis, a technical analysis and a financial analysis of the stock, as well as other indicators you may find and the analyst consensus.

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