XPeng stock price has held steady in the past few days, moving to a high of $24, its highest point since October 9. It has jumped by over 45% from its lowest level this year. It rose by 257% from last year’s low of $6.56.
XPeng sales surge continues
XPeng stock price has done well in the past few years as its sales growth gained momentum in October despite the rising competition in China and other countries.
The most recent results showed that its sales rose to 42,013 in October, up by 76% from the same period last year. This increase was higher than the 41,600 vehicles it sold in the previous month.
Its monthly sales have been in a strong uptrend this year, with the January to October sales rising by 190% to 355,209. Most of this growth was driven by the Mona M03 sedan, which has jumped to 200,000 in October.
The October deliveries mean that the company’s fourth-quarter revenue will be stronger than expected. Its most recent results showed that its revenue jumped by 125% YoY to $2.55 billion in the third quarter.
XPeng’s growth is happening as other companies in the sector slow down. For example, BYD sales continued to slow in October, pushing its stock to the lowest level in months.
Similarly, Tesla sales continued falling and is now pivoting towards robotics and artificial intelligence.
XPeng’s gross margin increased to 17.3% in the second quarter from the same period in 2024. The rising margin happened despite the ongoing price wars in China. Its vehicle margins rose to 14.3% from the previous year.
XPeng’s bottom line has continued to improve in the past few quarters. Its net loss improved to $0.07 billion in the second quarter, a big improvement from what it made last year.
The company’s business has continued improving, with its cash and equivalents hovering at $6.64 billion or RMB 47.57 billion, up from RMB 45.28 billion.
Still, a major risk is that the company is a bit overvalued. Its forward price-to-sales ratio is 1.98, higher than the median estimate of 0.94. This valuation may be justified by its strong revenue growth.
The next key catalyst for the XPEV stock price will be it financial results, which will come out on November 21. Analysts expect the upcoming results to show that the XPeng’s revenue rose 102% in the last quarter to CNY 20.50 billion.
XPeng stock price technical analysis
The daily timeframe chart shows that the XPeng stock price has moved up from a low of $16.14 in April to the current $23.50. It has formed an ascending channel and remained above the 50-day and 100-day Exponential Moving Averages (EMA).
The Relative Strength Index (RSI) and the MACD indicators have continued rising. Therefore, the most likely scenario is where it continues rising, moving to a high of $27.15, its highest level this year, which is about 15.3% above the current level.
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