Home » Is the China-based Tesla rival Xpeng a buy, CITIC says yes

Is the China-based Tesla rival Xpeng a buy, CITIC says yes

Products that are smart, high quality and affordable.

by SEP Editor
China EV Stock
(Photo Credit:kr-asia.com)

According to a recent research report released by CITIC Limited, sales of XPeng  Inc.(“XPeng” or the “Company”, NYSE: XPEV, HKEX: 9868.H) are expected to reach 200,000 units in 2022.

This also means that XPeng, which has delivered more than 10,000 units for three consecutive months, is expected to be the first to break through 100,000 units of annual sales in 2022.

In 2021, what efforts did XPeng put in to win the bullishness of capital?

Intelligence 

The core of the XPeng brand is its intelligence. XPeng CEO He Xiaopeng said clearly at the launch of XPeng P7: “XPeng’s label is smart, smart  is the most core advantage of XPeng.”

By the end of the third quarter of 2021, the number of XPeng’s R&D team exceeded 4,000 people, an increase of more than 100% from the end of 2020. In the third quarter of 2021, XPeng invested up to CNY1.264 billion in R&D, and the cumulative investment in the first three quarters reached CNY2.663 billion.

The continuous investment in R&D has given XPeng a good return.

XPILOT as an example, starting from July 2019, XPeng officially provides users with the intelligent driving assistance system XPILOT 2.5; in January 2020, the full-stack self-researched XPILOT 3.0 system was delivered to users via OTA on XPeng P7.

XPILOT system brings software revenue for XPeng. XPeng’s financial report shows that in the first quarter of this year, XPeng automobile software revenue was about CNY80 million.

“This quarter we recognized XPILOT software revenue for the first time in our whole vehicle revenue. I believe we are the only car company in China that has achieved a separate software fee through a full stack of self-researched intelligent assisted driving software.”

He Xiaopeng

High Quality

To prove the quality of the car, XPeng is subjected to extreme conditions time and time again, such as 550 hours of seawater shower testing, extreme cold challenges and so on.

Up to now, XPeng has three products on sale, P7, P5 and G3i, involving sedans and SUVs, making it the most complete new vehicle manufacturer in terms of existing product matrix.

(Photo Credit: cleantechnica.com)

Along with the continued release of the three models on sale, it also further boosts the single-month delivery volume of XPeng to a new high. The latest data shows that in 2021, the total delivery number of XPeng reached 137,953 units. Among them, XPeng P7 delivered 60,569 units, accounting for 62% of the total delivery volume; XPeng G3 series delivered 29,721 units, up 148% a year-on-year; XPeng P5, which started as large-scale delivery in October, delivered 5,030 units in December, setting a new high.

Three Intelligent Manufacturing Factories

At present, XPeng has completed the layout of three bases in Zhaoqing, Guangzhou and Wuhan, and used to build an sustainable intelligent manufacturing system.

Among them, on July 30, XPeng’s Wuhan project was launched. Electric drive workshop is the first time to join the manufacturing workshop, marking the future of XPeng independent intelligent manufacturing strength will continue to improve;

On November 25, photovoltaic system in XPeng’s Zhaoqing base officially began to generate electricity, marking XPeng took a practical step in response to the national “dual carbon strategy”.

He Xiaopeng said in the third quarter earnings call that XPeng’s three factories are capable of producing up to 400,000 units in total and can support up to 600,000 units of annual production.

In addition, in terms of sales and service network, by the end of 2021, XPeng had 661 branded supercharging stations across 228 cities and 311 physical retail stores in operation across 121 cities as of the end of November 2021, further accelerating the expansion of charging layouts outside of first- and second-tier cities.

XPeng embraces the dream by exploring technology, leading the change in the future of travel, and using technology to improve mankind’s driving  experience.

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