Alibaba-Backed XPeng Posts Record EV Deliveries; UBS Sees 37% Upside

XPeng Motors delivered a record 3,478 of its smart electric vehicles (EVs) in September 2020, representing a surge of 145% year-on-year.

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XPeng (XPEV) figures showed that delivery numbers rose 31% from the month of August. The deliveries consisted of 2,573 P7s, the company’s smart sports sedan, and 905 G3s, its compact smart SUV.

In the third quarter of 2020, the Chinese smart electric vehicle company delivered a total of 8,578 smart EVs, consisting of 6,210 P7s and 2,368 G3s, showing an increase of 266% year-over-year.

XPeng started mass delivery of the P7 in late June this year. As of September 30, 2020, a cumulative total of 6,535 P7s were delivered.

“We are pleased to have achieved a record month of deliveries, which demonstrates our ability to execute our strategy, accelerate sales of our Smart EVs and expand our service and charging network,” XPeng Ceo He Xiaopeng.

Last week, the company announced the building of a new car plant in China’s southern city of Guangzhou, which will be its new smart EV manufacturing base and is expected to significantly boost its future production capability upon completion in December 2022. The factory will be financed with 4 billion yuan from the local government. XPeng expects an annual production capacity of 100,000 units at the car plant.

Back in July, the company raised $500 million with a group of investors including Aspex, Coatue, Hillhouse Capital and Sequoia Capital China.

XPeng, which is backed by Alibaba (BABA), was co-founded in 2014 by Xiaopeng, former president of Alibaba Mobile Business Group together with Xia Heng and He Tao, former technology leaders of Guangzhou Automobile Group Engineering.

At the end of August, XPeng began trading on the New York Stock Exchange after its $1.5 billion initial public offering at an offering price of $15 per ADS. Shares closed 2.6% lower at $18.19 on Friday. (See XPEV stock analysis on TipRanks)

UBS analyst Paul Gong last month initiated coverage of the stock with a Buy rating and a $25 price target (37% upside potential).