Home » Catherine Wood New Year first buy is China EV — And out Tesla, again

Catherine Wood New Year first buy is China EV — And out Tesla, again

by SEP Editor
(Photo Credit: hotograph by Andrew White)

Singapore, Jan.17 – Recently, Zaobao (the leading Chinese-language newspaper in Singapore) reported that the fund owned by U.S. “stock goddess” Catherine Wood purchased its first electric car stock in 2022, not Tesla, but Chinese-owned XPeng (“XPeng” or the “Company”, NYSE: XPEV, HKEX: 9868. HK) .

Timeline  of Wood’s investment in XPeng

December 2, 2021 – Ark Investment Management bought 277,263 shares of XPeng stock worth approximately $13.39 million, marking the company’s first investment in XPeng.

December 6, 2021 – Ark Investment Management bought 254,601 shares of XPeng stock worth approximately $11.78 million.

December 14, 2021 – Ark Investment Management bought 97,697 shares of XPeng stock worth approximately $4.34 million.

Jan 10, 2022 – Ark Investment Management bought 14,859 shares of XPeng stock through Ark Investment Management, with an estimated total value of $633,439.

Why Wood keeps increasing its holdings in XPeng

Photo Credit:cleantechnica.com

Background of NEVs in China – As China promotes emission reduction and environmental protection, “double carbon” strategy, the sales of new energy vehicles will continue to show significant growth. Also, China’s policy also strongly supports the development of new energy vehicles.

XPeng in 2021 – With 16,000 deliveries in December 2021, XPeng has delivered more than 98,000 units cumulatively since 2021, a 263% year-over-year increase compared to 27,000 units in 2020. XPeng has surpassed NIO and Li Auto to become the annual sales champion of China’s new car-making power in 2021.

A wider range of product types – 2021 is a big product year for XPeng, from the launch of XPeng P5 in April to the listing of XPeng G3i in July to the global debut of XPeng G9 in November, it can be said that every quarter from the second quarter of this year XPeng has a new car launch. Up to now, XPeng has P7, P5, G3i three products on sale, involving cars, SUVs and other models, and is the most complete existing product matrix of the new force in car manufacturing.

Focus on R&D – According to the contents of the prospectus of XPeng, from 2018 to 2020 and the first quarter of 2021, XPeng’s R&D expenses will be $165 million, $326 million, $272 million and $84.36 million, respectively. In 2019, 2020 and the first quarter of 2021, R&D spending represents 89.2%, 29.5% and 18.1% of total revenue, respectively.

XPeng leads the new car makers in terms of technology, especially autonomous driving technology – among today’s new car makers, XPeng is currently the only car company in China that has developed its own full-stack autonomous driving technology and applied the software in mass-produced cars. XPeng’s latest self-developed autonomous driving system XPILOT3.0 is the highest level of autonomous driving technology that has been adopted in cars sold in the market today.

Explore Robotaxi  business in 2022 – On November 23, 2021, He Xiaopeng, XPeng’s CEO, said in the Q3 conference call that in the second half of 2022, XPeng will start exploring the Robotaxi business. Through the capability of mass-production front-loading Robotaxi software and hardware, as well as future cooperation with various travel operators, XPeng can create greater business value.

Expansion into multiple international markets – XPeng confirmed that it will soon enter the European market, including the Netherlands, Sweden and Denmark. XPeng opened a store at Westfield mall of Scandinavia, expanding quickly.

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