XPeng: China Struggles Won't Last
- XPeng Inc. got 2023 off to a slow start with weak January deliveries.
- With the Tesla, Inc. price cut, covid and the Chinese New Year, most Chinese consumers stayed on the sidelines looking for price cuts.
- The Chinese EV manufacturer predicts a big year ahead due to the new G9 SUV.
- XPeng stock is cheap, trading at only 1x '23 sales targets.
The Chinese electric vehicle ("EV") market got off to a slow start in January, with XPeng Inc. (NYSE:XPEV) reporting a major sequential decline in monthly deliveries. The Chinese New Year and Tesla, Inc. (TSLA) price cuts impacted customer demand in the quarter. My investment thesis remains Bullish on a rebound in the Chinese EV sector, as much as on an XPeng gain with the stock still trading close to the lows.
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