Robert Way Investment Thesis XPeng ( NYSE: XPEV ) continues to achieve rising car sales figures, but this has not led to significantly higher sales and better margins in the past two years. It is questionable whether this trend will continue, given the immense competitive pressure. The company is trying to expand internationally, but so are many competitors.
The valuation seems neither cheap nor expensive to me, but I could buy the market leader BYD for a similar price. The available cash will probably only be sufficient for another 1-2 years, which suggests that the share dilution of the past will continue. Overall, I have found many negative aspects and risks in my analysis but not many positive aspects that favor a buy rating.
Company Overview XPeng, founded in 2014, is a Chinese EV manufacturer that, according to the company, produces "Smart EVs that appeal to the large and growing base of technology-savvy middle-class consumers." The company is also considering extending its product range "from road EVs to ones that fly." which means entering the space of flying electric passenger drones, but I did not find any near-term plans for this.
XPeng website The company is also making efforts to expand globally, for example, in the French market , Egypt , and Thailand . These partnerships are initially very limited in scope, as seen in the quote below, but they show the company's strategy going forward. The Chinese market is highly competitive.
Currently, several Chinese compani.