Xpeng Stock Jumps: New IPO is Latest Tesla China EV Rival To Report Booming Q3 Sales – Investor's Business Daily

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Xpeng Motors (XPEV) more than doubled September and third-quarter sales. Xpeng stock surged ahead of the release of overall China auto sales data.


In September, Xpeng delivered 3,478 electric vehicles, up 31% from August and up 145% year over year. For the full third quarter, Xpeng delivered 8,578 electric cars, up 266%. Q3’s tally included the P7 sports sedan and G3 compact SUV. Xpeng began mass deliveries of the P7, a Tesla Model 3 rival, in late June.

Eyeing future production, Guangzhou-based company opened a new factory in its home city in September.

Xpeng deliveries topped expectations, Bank of America analysts said Monday. They also see only limited impact from last week’s Tesla (TSLA) price cuts to made-in-China Model 3 electric cars.

“The data shows that most of the customers who buy P7 care more about driving range and cost to performance, while the majority of Model 3 car buyers care more about brand/technology,” they wrote. “We believe the direct impact to Xpeng is manageable and we don’t rule out the possibility that Xpeng lowers the price of P7 if orders are impacted post Tesla’s price adjustment,” they added.

Xpeng Motors and Chinese peer Li Auto (LI) pulled off $1 billion-plus IPOs in this year’s hot market for electric car stocks. With Nio (NIO), they are challenging Tesla in the world’s biggest car market.

On Friday, Nio also reported more than doubling September and Q3 deliveries. Li Auto grew September and Q3 sales sequentially. Li Auto began producing its first model in November 2019. The results backed views of a big rebound in China’s auto market, the world’s largest, after the Q1 pandemic hit.

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Tesla on Friday reported 139,300 Q3 deliveries globally, topping estimates for 137,000. China was likely a major source of strength, given its still-new Shanghai factory.

Nio Stock, Electric Car Stocks

Shares of Xpeng Motors jumped 9.7% to 19.95 on the stock market today.

Li Auto stock is working on a 25.10 buy point in its first IPO base, MarketSmith analysis shows. The relative strength line for the new IPO stock is lagging. Li Auto stock failed a breakout past 20 and there’s no new entry yet. Nio stock is extended from a 15.55 buy point, meaning shares are not in buy range.

Among other electric car stocks, Nio gained 0.7%, Li Auto 4.8%, Kandi Technologies (KNDI) 6% and Tesla 2.1%. BYD (BYDDF) fell 0.4% in Monday morning action after soaring 22% last week.

Find Aparna Narayanan on Twitter at @IBDAparna.


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