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An Xpeng P7 car is on display at the Beijing Motor Show in Beijing on September 27, 2020.
WANG ZHAO / AFP through Getty Images
Starting the Chinese electric vehicle
XPeng
reported strong deliveries in the fourth quarter Sunday night.
The company delivered 5,700 vehicles in December 2020, up from 4,224 in November and up 326% from December 2019. For the entire fourth quarter, XPeng (ticker: XPEV) delivered 12,964 vehicles.
Deliveries exceed XPeng’s own initial projections. XPeng’s management said in a conference call in the third quarter that it expects to deliver about 10,000 vehicles in the fourth quarter.
All three stocks of Chinese vehicles listed in the US had a busy weekend, each reporting delivery numbers. The theme was the same for everyone – XPeng, along with
NIO
(NIO) and
Read Auto
(Li) exceeded internal projections. NIO delivered more than 17,000 vehicles, about 1,000 more than projected management. Li delivered more than 14,000 vehicles, about 3,000 more than the driving force had predicted.
Leader EV
adze
(TSLA) also reported fourth-quarter deliveries over the weekend. Elon Musk’s company delivered more than 180,000 vehicles in the fourth quarter, which was better than about 176,000 vehicles designed by analysts.
It is not easy to predict the reaction of investors to Chinese electric vehicle ads. All three stocks fell after reporting strong deliveries in November. Although Li sold several shares to raise cash during the period when the three released delivery figures in November.
However, the fall of good news is a common stock on the bull market, and EV shares are certainly on a bull market. Tesla grew by about 740% in 2020 and is now the most valuable car company in the world by a wide margin. XPeng shares closed at $ 42.83 in 2020, a substantial increase over its summer IPO price of $ 15 per share.
Earnings make XPeng and the Chinese EV sector as a whole expensive. XPeng, for example, trades about 15 times the estimated sales in 2021. Barron’s recently wrote that Chinese electric vehicle stocks look too expensive. This article appeared in mid-December, and Chinese electric vehicle stocks, on average, trade in connection with their place at the time.
Wall Street, for the most part, disagrees with Barron’s. Over 60% of analysts evaluate the three Chinese shares of electric vehicles – NIO, Li and XPeng – at Buy. Average valuation report Purchase for shares in
Dow Jones Industrial Average
is about 57%.
For XPeng, 67% of analysts covering the company value shares in Buy. The average price targeted by the analyst is about $ 49 per share.
Monday should be an interesting day. Investors also have to deal with recent Tesla Y prices in China. The Model Y crossover is priced below a NIO EC6. The XPeng EV crossover – the G3 model – is priced both below NIO and above Tesla crossovers. But any concern among investors about the price cut could be offset by the number of deliveries this weekend.
Write to Al Root at [email protected]