The concept of a Tesla (TSLA) killer has been hotly debated and deeply sought since Tesla became popular. And now, fellow electric vehicle maker Xpeng (XPEV) may have come up with one for perhaps the first time. Whether or not it serves the purpose remains to be seen. But it is drawing sufficient attention to send Xpeng shares up over 4% in Tuesday afternoon’s trading.
The vehicle in question is known as the Mona. A mass-market electric vehicle priced under $17,000 in some cases, the basic version will offer an operating range of 320 miles and boast a few parking assist features.
But the absolute winner is the Mona M03, which will come with self-driving features and a range of just over 360 miles. When it sells in China, it will sell for significantly less than its closest Tesla competitor at 155,800 yuan (about $21,867), which compares well against Tesla’s cost of 231,900 yuan (about $32,548).
Looking for European Manufacturing Sites
Already some are likely looking at the news and realizing the Mona will probably never hit American shores, especially given that both presidential candidates right now are looking at massive tariffs on Chinese goods. However, that may not be the problem you might expect, as Xpeng is looking for European manufacturing sites.
If the vehicles in question are built in Europe, they can be shipped to other countries, and the tariffs that would have hit would, in turn, not go into effect. This allows the Chinese auto market a chance to break into other countries without being hit with massive new fees that would likely price them out of most customers’ reach.
Is XPEV Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on XPEV stock based on seven Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 57.75% loss in its share price over the past year, the average XPEV price target of $11.55 per share implies 47.89% upside potential.
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