XPeng’s EV Deliveries Pop 470% In January; Shares Surge 6% Pre-Market

Shares of XPeng rose 6.3% in Monday’s pre-market session as the Chinese electric vehicle company reported that EV deliveries jumped 470% during the first month of the year.

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Specifically, XPeng (XPEV) handed over a record 6,015 smart EVs in January of this year, a 470% increase year-on-year, and marking the third consecutive month of record-breaking delivery numbers.

The EV maker said that both the P7 smart sports sedan and the G3 smart compact SUV deliveries contributed to the “strong momentum.” Total January deliveries consisted of 3,710 P7s and 2,305 G3s. As of Jan. 31, the number of cumulative P7 deliveries amounted to 18,772. The deliveries of G3s surged 118% year-over-year.

“The record-breaking delivery results reflect the strong market appeal of XPeng’s products and services as the Company accelerates its delivery capabilities and launch of new smart features, expanding brand awareness and marketing efforts,” XPeng stated.

XPeng rolled out the new version of P7’s operating system, Xmart OS 2.5.0, on Jan. 26, with optimized features and 40 new functions, including the navigation assisted highway autonomous driving solution NGP (Navigation Guided Pilot).

The EV maker has been shoring up its cash coffers in recent months, including a $2 billion credit line. In December, the company raised about $2.5 billion by selling American depositary shares (ADS) at $45 a piece in what marked the first public follow-on offering since its initial public offering (IPO) in August 2020.

The fund raising comes as the Chinese EV maker is working on its international strategy following the launch of its first production model in Norway.

XPEV, which began trading on the New York Stock Exchange in August after its $1.7 billion IPO at a price of $15 per ADS, closed 4% lower at $48.18 on Jan. 29. The stock pulled back after the company was forced to recall 13,399 of its G3 vehicles due to an inverter issue that may cause the vehicle to lose power and pose a safety risk, according to media reports which quoted China’s State Administration for Market Regulation. (See XPEV stock analysis on TipRanks)

Earlier this month, Deutsche Bank analyst Edison Yu kept a Buy rating on the stock with a $58 price target, listing a number of catalysts in coming months, which support his short-term investment idea and could mean “some upward momentum” in the shares.

Yu is impressed with the “positive media and investor feedback” from the test drives of XPeng’s new navigation guided pilot L3 functionality. The analyst believes that the XPILOT 3.0 system will be the best consumer autonomy system on the Chinese market for probably at least the rest of the year.

XPEV has picked up 5 Buys, 2 Holds, and 1 Sell which add up to a Moderate Buy consensus rating. Meanwhile, the average analyst price target stands at $53.93, implying 12% upside potential over the coming year.

On TipRanks’ Smart Score system, XPEV gets a 9 out of 10, indicating that the stock has strong potential to outperform market expectations.