XPeng (NYSE:XPEV) announced its vehicle deliveries in June, which saw deliveries of 10,668 EVs, an increase of 24% year-over-year and up by 5% from the month of May. Overall, XPeng delivered 52,028 EVs in the first six months of the year, a 26% rise year-over-year.
XPeng’s X9- Its Flagship Vehicle
The Chinese EV company delivered 1,687 units of its X9 seven-seater multipurpose vehicle (MPV), which was launched earlier this year. On a cumulative basis, XPeng delivered 13,143 X9 units in the six months after its launch, making it the top seller in both the all-electric MPV and three-row model segments in China.
XPeng Is Gaining Ground Amid Rising Competition
The Chinese EV market is seeing intensifying competition and a price war among major players. However, XPeng has fared relatively well among its peers and has seen its gross margin expand in the first quarter. In fact, during Q1, XPeng’s gross margin grew to 12.9%, up from just 1.7% in the same period a year back. Furthermore, the company saw its Q1 revenues surge by 62.3% year-over-year to RMB 6.55 billion, or the equivalent of $907 million.
XPeng is also targeting expansion beyond China, specifically Europe, and is working on the cutting edge of automotive AI technology.
In June, the company’s Advanced Driver Assistance System (ADAS), XNGP, saw a monthly active user penetration rate of 84%. Moreover, XPeng will provide more details about its electric hatchback coupe, Mona M03, in July.
Is XPEV a Good Stock to Buy?
Analysts remain cautiously optimistic about XPEV stock, with a Moderate Buy consensus rating based on seven Buys, three Holds, and one Sell. Year-to-date, XPEV has declined by more than 45%, and the average XPEV price target of $11.14 implies an upside potential of around 52% from current levels.
