The latest monthly deliveries reported by China-based Xpeng and its peers reflect the rapidly growing demand for electric vehicles. Xpeng’s deliveries exploded 326% year-over-year to 5,700 vehicles in December 2020 and were up 35% month-over-month.
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Xpeng (XPEV) delivered 3,691 P7s, the company’s sports smart sedan, and 2,009 G3s, its smart compact SUV, in December. Including the December deliveries, the company’s 4Q deliveries grew 303% year-over-year to 12,964 smart EVs and 2020 total deliveries grew 112% to 27,041. The company’s 4Q deliveries were notably ahead of its guidance of about 10,000 vehicles.
The company’s December and 4Q growth rates were driven by growing brand awareness as well as enhanced sales, marketing and supercharging service initiatives across China. (See XPEV stock analysis on TipRanks)
On Dec. 31, Merrill Lynch analyst Ming Hsun Lee reiterated a Buy rating on XPeng and raised the price target from $43 to $51.10. Following XPeng’s $2.8 billion rights issue in December, Lee noted that XPeng has the cash it needs to fund its growth and several near-term catalysts ahead. The other positive aspects highlighted by the analyst included the expansion of the company’s free charging program and upcoming launches.
Lee expects 61% compound annual revenue growth for XPeng through 2025 and stated, “We remain positive on XPeng’s long-term share gain and improving profitability.”
Xpeng’s ADRs started trading on the NYSE in August 2020. Shares are currently trading at $42.83 and the average price target of $44.23 indicates an upside potential of only 3.3% in the months ahead.
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