Chinese electric car maker XPENG (NYSE:XPEV) released a limited edition P-7 sedan at the Guangzhou Auto Show following news that it had made a major technology announcement, following the release of a limited edition model of its P-7 sedan on Monday, seeing its shares rise by around 25%.
It also announced that it had produced more than 10,000 SmartEV P7 models in October, following its positive revenues last Friday, confirming that it had risen by more than 10%. The announcement of this production is ahead of expectations and will help solidify the company’s reliability compared to competitors like NIO, Nikola Corp, Lucid and of course Tesla.
At the same car show that unveiled the limited edition P7 model, XPENG announced that it has upgraded its driver assist technology for its 2021 production model, with a LIDAR sensor. These sensors are part of a new system described as the “next-generation autonomous driving architecture” that features cameras, radars, lidar units, high-quality computers and ultrasound sensors.
While many automakers already offer hands-free driving technology, his Xpeng CEO Xiaopeng said they were the first company to offer Lidar sensors in production models, allowing users to drive hands-free in slow urban environments across the architecture.
The future may be bright for the company in the future. The fear of the risks posed by China’s political composition is effective, but it also supports the growth of EVs. The future of transportation appears to be shaking crucial in favour of electric vehicles as the country is keen to cut oil and gas import costs and forecast fossil fuel use, which is expected to fall 70% by 2030.
China’s EV sales rose 12.5% year-on-year in October, but we expect Trump’s trade terms to sink when Biden takes office next January (although BlackRock remains skeptical of this).
Xpeng also benefited from having his Xiaopeng, an ambitious CEO. He sold his last company for $4 billion in 2014, and was responsible for Xpeng in 2017, and now enjoys the support of e-commerce giant Alibaba.
But what really matters is whether Xpeng can maintain its growth or whether it’s a flash of bread. The company is off to a strong start by confirming that the stock price rose from $0.20 to more than $66 between September and November.
But we must emphasize, this is just a “start.” Performance and forecasting are still strong, but consumer attitudes can change with DIME (particularly with trendy themes like EVs), and there is always a risk when investing in Chinese companies listed in New York. That being said, if the company emulates Tesla or Niolary, it becomes a haymaker for the early supporters.
