What is Xpeng
Guangzhou Xiaopeng Motors Technology Co Ltd, doing business as XPeng Motors, is a Chinese electric car manufacturer. The corporation is headquartered in Guangzhou, with offices in Mountain View, California.
Xpeng manufactures environmentally-friendly vehicles, namely an SUV (the G3) and a four-door sports sedan (the P7). It targets the mid-to-high-end segment in China's passenger vehicle market.
For driver assistance, XPeng uses a combination of lidar, radar, and a camera. The lidar system measures the distance between objects and the time it takes for the light to reflect back to build a 3D space using laser light. The radar will provide the vehicles the ability to determine an object's speed as well as its location. The camera supplies the car with fundamental semantic information. With drone firms like DJI announcing the inclusion of Lidar in their aerial surveying technologies, the price of Lidar has dropped dramatically in recent years.
The Zenmuse L1 - Lidar + RGB camera is priced at 13,100 dollars. Livox provides the lidar system for XPeng. Consumers may now enjoy lidar at a lower cost thanks to lower prices and increasing innovation & development.
XPeng's batteries are developed by China's largest battery developer, Contemporary Amperex Technology (CATL).
XPeng has switched from CTP to LFP batteries, which do not require cobalt, which is one of the most expensive components in a battery. However, LFP batteries diminish the vehicle's range. LFP batteries have a higher cycle life and are generally safer.
XPeng offers free lifetime charging, much like Tesla does for its consumers all around the world. XPeng's charging network has grown to over 1,000 stations across China, with consumers also having access to 200,000 third-party outlets in large cities.
XPeng operates two factories, one in Zhaoqing and the other in Guangzhou, both of which are currently under construction. The facility in Zhaoqing has a production capacity of 100,000 automobiles per year. However, since its initial offering, XPeng has only sold 50,000 automobiles.
Xpeng is a publicly traded company, making its stock available to anyone of legal age interested in purchasing shares.
Why Buy Xpeng Shares (XPEV)
Xpeng shares represent a unit of ownership in Xpeng Inc. – and they are considered to be amongst the most traded financial instruments around the globe. The company received positive feedback on the efficacy of its COVID-19 vaccine, Xpeng this race during the pandemic, causing its share price to jump.
Xpeng shares will rise and fall in value according to how well the company is performing at a given moment in time. Better-than-expected earnings will make Xpeng share prices rise, while weaker earnings will make share prices fall. However, there are many reasons why a company's share price can change.
People trade Xpeng shares because, just like other financial instruments, they can be an opportunity to invest money. At a basic level, you can take a position on Xpeng shares to get exposure to economic growth. If an economy is in good shape, you might find that companies operating in that specific economic branch or industry will grow too.
Company growth is correlated with share price increases, which is what people are hoping for when they buy Xpeng shares.
Xpeng Motors soared more than 40% in its debut on the New York Stock Exchange on 26 August 2020.
The IPO, which is the third major listing in New York by Chinese EV companies in the past two years, comes as share prices of EV makers including Tesla Inc (Nasdaq: TSLA) and Nio Inc (Nasdaq: NIO) have surged in recent months.
XPeng made its Hong Kong Stock Exchange debut on July 7, 2021. The decision to introduce the company to the exchange before a second listing may result in a higher position for the company in the city's stock indexes. XPeng will be eligible for Stock Connect, an investment route that facilitates trade between Hong Kong and mainland China, as a dual-primary listing. With its Hong Kong listing, XPeng became the first Chinese company to have a dual main listing in the United States. The action will also give some protection for the corporation if it is banned from the US market.
Xpeng stock is traded on the New York stock exchange under the XPEV ticker.
If all that makes you want in on Xpeng’s electrifying growth, here is everything you need to know to buy Xpeng stock & shares to invest in XPEV.
How to Buy Xpeng Shares
Learning how to buy shares may not sound complicated, but you will need to do some research — and learn the basics — before making your first investment.
- Learn the difference between investing and trading
- Review Xpeng’s performance and outlook 2022
- Understand the risks and charges
- Access the trading platform and place your orders
- Stay up to date with the latest news and rumors about Xpeng
1. Learn the difference between investing and trading
People have two options to buy shares of stock online. Firstly, they can buy shares in companies on the exchanges where they are listed. For instance, you can buy Xpeng stock on the NASDAQ exchange, so you own a share in the company (investor). Alternatively, they can buy Xpeng shares without owning them, speculating on the price of the underlying asset (trader).
Investing and trading are similar terms that some people will sometimes use interchangeably – but there are significant differences for you to be aware of.
Investing in Xpeng Stock
Investors buy Xpeng shares hoping their price will rise and they can sell them later for a profit, adhering to the basic principle of buying low and selling high. Investors will take positions over a longer period, attempting to profit from share price changes as well as dividend payments.
While this means that they might need more initial capital to get started when compared to trading, their losses would be capped at this initial price tag. That said, investors should be aware they might get back fewer returns than they initially invested.
Investors will buy Xpeng shares to:
- Make a profit from the Xpeng share price rising
- Receive an income from dividends if the company pays them
- Benefit from the effects of compounding
This last point requires investors to hold onto their shares for an extended period. That’s why you’ll sometimes hear the phrase ”time in the markets is better than timing the markets” when talking about share investments.
>> Learn how to invest in stocks
Xpeng (or any single stock, for that matter) can be a very volatile investment. You can lower the risk by diversifying your investment holdings.
An index fund is a type of mutual fund or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a financial market index, such as the Standard & Poor's 500 Index (S&P 500). An index mutual fund provides a broad market exposure, low operating expenses, and low portfolio turnover. These funds follow their benchmark index regardless of the state of the markets.
XPEV currently is not included in any major stock market index.
Biotech exchange-traded funds (ETFs) provide exposure to the performance of companies within the global pharmaceutical and biotechnology industry.
XPEV makes up 5.54% of PGJ (Invesco Golden Dragon China ETF), 4.34% of QCLN (First Trust NASDAQ Clean Edge Green Energy Index Fund), 3.63% of SMOG (Low Carbon Energy ETF), 3.23% of ERTH (Invesco MSCI Sustainable Future ETF).
>> Learn what ETFs are and how do they work
Trading Xpeng CFDs
On the other hand, traders might seek to capitalize on short-term share price gains. Rather than investing in the shares, traders speculate on the shares’ value. They can speculate on it rising by going long, as well as falling by going short.
Trading Xpeng stock means that you are speculating on a share’s price movements with derivatives like CFDs. In other words, you are purchasing Xpeng shares without taking direct ownership.
Leverage is available when you use this product, giving you full market exposure for an initial deposit – known as margin – to open your position.
For example, a trader who wanted to buy 100 Xpeng shares CFD at $40.00 per share would only require $800 of trading capital, thereby leaving the remaining $3,200 available for additional trades.
But keep in mind that leverage can increase both your profits and your losses as they will be based on the full exposure of the trade, not just the margin requirement needed to open it. This means losses, as well as profits, could far exceed your margin.
With CFDs, you can ‘buy’ (go long) the shares if you think the Xpeng stock’s price will rise, or you can ‘sell’ (go short) if you think the Xpeng stock’s price will fall.
>> Learn what is CFD trading and how it works
Going Long Xpeng CFD
Xpeng has a sell price of $42.20 and a buy price of $42.50.
Xpeng’s next earnings announcement is fast approaching, and you expect it to be good news.
You think the company’s share price will go up, so you buy 200 Xpeng CFDs at $42.50 This is the equivalent of buying 200 Xpeng shares.
Because in CFD trading you can use leverage, you do not need to put up the full value of Xpeng shares. Instead, you only need to cover the margin, which is calculated by multiplying your exposure with the margin factor for the market you are trading.
So, if Xpeng has a margin factor of 20%, your margin would be 20% of the total exposure of your trade (200 share CFDs x $42.50 = $8,500), which is $1,700.
If your prediction is correct:
When Xpeng announces its results, it is clear the company had a successful quarter and as you had predicted, its share price climbs.
You decide to close your position when it reaches $49.50, with a buy price of $49.80 and a selling price of $49.50
You reverse your trade to close a position, so you sell your 200 CFDs for $49.50
To calculate your profit, you multiply the difference between the closing price and the opening price of your position by its size. $49.50– $42.50 = $7.00, which you multiply by 200 CFDs to get a profit of $1,400.
If your prediction is wrong:
Xpeng’s results are worse than expected, and its share price immediately falls. You decide to cut your losses and sell your 200 CFDs at $40.50.
Your position has moved $2 against you, meaning you suffer a loss of $400.
Going Short Xpeng CFD
Shorting with derivatives can be an effective way to protect your investments against downward price movements in your non-leveraged investment portfolio. Also, it can be a way to generate profits outright from shares that are falling in value. But when you go short, your potential losses are theoretically uncapped because there is no limit on how high a company’s share price can rise.
Here is an example:
Suppose Xpeng shares are currently trading with a selling price of $42.20, and you think the price will go down. So, you decide to open a short CFD position on 100 Xpeng shares CFD. A week later, the buy price reaches $34.00, and you close your position. This means you made $12,100 in profit ([42.20 - 34.00] x 100 = $820), excluding additional costs.
If the price rises, you register a loss. For example, if Xpeng shares rose to a price of $45.30, you would suffer a $310 loss instead, excluding additional costs.
When you create a trading account with CAPEX, you will be able to:
- ‘Buy’ (go long) or ‘sell’ (go short) Xpeng and other 2,000 international shares to speculate on their price rising or falling
- Take a position on our range of ETFs to get exposure to a basket of shares from an entire country, index, or sector that could be rising or falling in price.
- Trade a host of global indices to go long or short on the performance of an entire economy with a single trade.
- Use QuantX, the smart portfolio builder that helps you cover the popular industries and only invest in the top-performing stocks.
2. Review Xpeng’s Performance and Outlook 2022
Before buying Xpeng stock—or any stock (see our guide on how to buy shares)—it’s wise to do some research into the company’s financials, performance, and outlook. The easiest place to get started is through a company’s annual reports and quarterly reports. Public companies like XPEV are required to publicize detailed information about their financial health in these.
You can find these on Xpeng’s investor relations site or by searching the Securities and Exchange Commission’s (SEC) database.
You may also turn to experts for their input. Brokerage companies frequently release commentary on major stocks and industries, and third-party evaluators like Trading Central provide comprehensive technical and fundamental analysis.
When you combine financial data with expert insight, you will be able to decide how much of your money you want to put into Xpeng stock.
Xpeng Shares Forecast - Fundamental Outlook 2022
Before you load up the trunk with Xpeng shares, pop opens the hood and see what you are really getting into. Remember, when you buy Xpeng stock, you are purchasing a small portion of an actual business:
XPeng Inc is a Smart Electric Vehicle company designing, developing, manufacturing, and marketing smart electric vehicles in China.
Xpeng's balance sheet, income statement, competition, and management (all explained in our guide on how to research stocks) will help you give the company a good once-over.
You can access research, analyst ratings, and other key information about Xpeng via your brokerage account or a financial information website. If you like what you see, your next step is to consider whether Xpeng fits into your current investment portfolio.
Xpeng's market capitalization is $38.7B
- The -7.08 percent Return On Assets of XPEV is in line with the rest of the industry. The average Return On Assets in the industry is -4.33 percent.
- The profit margin of XPEV is -28.55 percent, which is lower than the industry average. The average profit margin in the industry is 0.03 percent.
- We can infer that XPEV is valued accurately when we compare its current price to its book value. It is currently trading at a price of 10.74 times its book value.
- XPEV had negative earnings last year, resulting in a negative Price/Earnings Ratio.
- XPEV has a negative Price/Earnings Ratio as well as a negative Forward Price/Earnings Ratio. For 2022, no positive earnings are projected.
- When comparing XPEV's price book ratio to the average industry price-book ratio of 4.22, it becomes clear that XPEV is more expensive than its rivals.
- In the previous year, revenue increased by 151.78 percent. This is a tremendous increase!
- Revenue growth has been exceptionally significant for XPEV over the last 5 years. The revenue has been increasing at a rate of 2354.60 percent every year on average.
- Revenue growth is predicted to be robust for XPEV. Revenue will increase by 88.55 percent every year during the next five years.
- Earnings Per Share (EPS) growth is predicted to be modest for XPEV. The EPS will increase by 3.12% per year over the next five years.
- XPEV's profits per share have dropped by -41.23 percent in the last year.
- Revenue growth is slowing: in the next five years, growth will be slower than in previous years.
- The Current Ratio of XPEV is 3.87. This shows that XPEV is financially sound and will be able to satisfy its short-term obligations without difficulty.
- XPEV is in a stronger position than the industry average to satisfy its short-term obligations. Its Current ratio is significantly lower than the industry average of 2.04.
- With a Quick Ratio of 3.69, XPEV has no problems meeting its short-term obligations.
- When compared to the average industry Quick Ratio of 1.73, XPEV is better positioned to satisfy its short-term obligations than the average industry competitor.
- The Debt to Equity ratio for XPEV is way better than the industry averages.
*Last update: December 2021. Source: Yahoo Finance
Xpeng has never declared or paid a cash dividend and does not intend to pay.
Xpeng Shares Forecast - Technical Outlook 2022
Technical traders analyze price charts to attempt to predict price movement. The two primary variables for technical analysis are the time frames considered and the technical indicators that a trader chooses to utilize.
Our web-trading platform, for example, offers 6 chart types (including the famous Japanese candlestick chart) to help you analyze price performance across different timeframes. It also enables you to deal in an instant – directly from the charts. You will be able to open, close and edit positions in just a couple of clicks.
Trading charts always feature distinct patterns that technical analysts can use to interpret the behavior of buyers and sellers. These chart patterns can give traders an indication of where the market could go next. As you will notice when you look at a chart, the market will usually move in one overall direction or trend. There are three types of market trends: uptrends, downtrends, and sideways trends.
XPeng stock formed an IPO base shortly after it debuted in August 2020. From there, the stock had a successful breakout from a 25.10 buy point.
Shares soared past 74 until they peaked in Nov. of last year. Then the stock lost much of its market value before bottoming at roughly 23 on May 13, completing a falling wedge.
Xpeng shares are trading now in a clear uptrend channel indicating a 2022 bullish perspective. Price should climb up to $60, the upper band of the channel and the high of 2021.
Technical indicators do not show any sign of bearish divergence, which means a steady advance is more likely.
To buy Xpeng shares or not?
It is recommended to watch for stocks in the major long-term support area. We should buy Xpeng shares at relatively cheap prices (compared to historical values), not expensive prices. Also, have an exit plan for how you will exit a profitable trade. Define how and why you will exit. Since we used to support to get into the trade, you may consider exiting just below a long-term resistance level.
If buying at support, and planning to exit just below resistance, the upside potential should outweigh the downside risk by at least 2:1 or even 3:1. That means that if you buy Xpeng shares at $42, you should be reasonably able to get out of the stock at $37 or higher. In an absolute worst case you lose $5 a share, but based on the historical chart it is quite feasible to go up to $100/share or more. This is known as the risk/reward ratio, a key indicator when deciding to buy Xpeng shares or not.
With CAPEX WebTrader, you can perform an in-depth analysis of the charts with 90 indicators (including moving average, MACD, RSI, and Bollinger Bands). The platform also supports an interactive trading activity with high-end research tools helping you interpret market data.
Analyst consensus - BUY
Neutral based on 25 analysts offering recommendations for Xpeng stock in the last 3 months, the overall consensus is BUY (by analysts ranked 3 to 5 stars):
- 36% Strong Buy (9)
- 52% Buy (13)
- 12% Hold (3)
The price target on Xpeng - $61.00
Based on 25 analysts offering 12-month price targets for Xpeng in the last 3 months, the average price target is $61.00, with a high estimate of $96.60 and a low estimate of $40.10.
3. Understand the risks and charges
Trading can be seen as riskier than investing due to leverage. But investing also carries a risk – and there is no guarantee that your investments would increase in value, so you could receive back less than you initially invested.
Before deciding to trade in shares, you should take steps to manage your risk. We have courses at CAPEX Academy that take you through risk management and how to mitigate your exposure to risk in the financial markets.
Our costs and charges for trading vary depending on the product that you use to take a position.
Xpeng (XPEV) CFD Trading Conditions
|SPREAD PER UNIT
|OVERNIGHT ROLLOVER - LONG
|OVERNIGHT ROLLOVER - SHORT
- Spread represents the difference between ASK price and BID price.
- Future Rollover adjustment consists of the difference in price between expiring contract and new contract as well as the spread of the CFD.
- Swap is the amount credited to or debited from an account where positions are held overnight.
- Inactivity fee represents the monthly amount deducted if no activity is recorded for 12 months in an account.
4. Access the trading platform and place your orders
To buy Xpeng shares CFD with CAPEX Webtrader is very easy and intuitive. Opening an online trading account is as easy as setting up a bank account. Here are the steps:
Open an account or log in
First, create an account or log in on capex.com. To open an account, click the "Register" button and complete your details.
Once the platform is accessed, the registration process must be completed in order to operate with real money. Click "Complete the Registration and Start Trading".
To log in, from the CAPEX website, click on "Login".
Deposit funds into your account
To trade with a live account, it is necessary to deposit funds. This is done from the platform itself by clicking on the "Add funds" button:
Also, it is possible to trade on a risk-free demo account with a balance of € 50,000, which is ideal for getting to know the platform and testing trading strategies.
CAPEX offers you different payment methods: debit cards, credit cards, bank transfer, skrill, and more.
It is noteworthy that CAPEX does not charge any fees or commissions for depositing funds.
Look for Xpeng shares
To view Xpeng shares (XPEV) real-time price and chart on the trading platform can click on the "Search" icon located in the left panel or by clicking on "Shares" and then select the instrument, in this case, Xpeng.
Use the indicators and drawings to analyze the chart
Click the indicators icon and select your favorite ones. There are trend-following, oscillators, volatility, and support/resistance indicators available. To learn how many indicators to use and how to combine then visit the Technical Indicators section in CAPEX Academy.
Set up the order to buy Xpeng shares
To buy Xpeng shares CFD, click on the "Buy" button and a window is displayed to configure the purchase order:
The number of Xpeng shares to be purchased must be entered and it is allowed to set up a Stop Loss to limit the potential loss, and/or a Take Profit to close a profitable position once the Xpeng stock reaches a specific price. These orders can be configured based on price, pips, cash value, or percentage.
To proceed with the purchase, click on "Place Order".
However, XPEV trading does not end here. You will want to check out the next step to make sure you are investing your money as well as you can.
Why Trade Xpeng with CAPEX?
- Advanced AI technology at its core: Whether they prefer the web-based and mobile-ready WebTrader or favor the highly popular MetaTrader 5, we make sure investors make effective use of fast and reliable trade execution speeds, complex order and risk management tools, advanced charting options, powerful research tools in collaboration with highly-regarded platforms such as Trading Central or TipRanks.
- Trading on margin: Providing trading on margin (up to 5:1 for individual equities), CAPEX gives you access to the stock market with the help of CFDs.
- Trading the difference: When trading Xpeng CFD, you do not buy the underlying asset itself, meaning you are not tied to it. You only speculate on the rise or fall of the Xpeng stock price. Online trading with CFDs is nothing different from traditional trading in terms of strategies. A CFD investor can go short or long, set stop loss, take profit, and apply trading scenarios aligned with their objectives.
- All-round trading analysis: The browser-based platform allows traders to shape their market analysis and forecasts with sleek technical indicators. CAPEX provides live market updates and various chart formats, available on desktop, iOS, and Android.
- Focus on safety: capex.com is operated by Key Way Investments Ltd and is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) (license no. 292/16).
- Global partnerships: CAPEX is proud to be the Proud Sponsor of Juventus, one of the most prestigious football clubs in the world, a football club that has a special place in the hearts of the people of Italy, with a strong legacy and a dedicated community.
5. Stay up to date with the latest news and rumors about Xpeng (XPEV)
Get the latest Xpeng Inc. (XPEV) stock news and headlines to help you in your trading and investing decisions.
History of Xpeng
Former senior executives at GAC Group with expertise in automotive technology and research & development, Xia Heng (Henry Xia) and He Tao co-founded XPeng in 2014. UCWeb founder and former Alibaba CEO He Xiaopeng, namesake and current Chairman of XPeng, and Xiaomi founder Lei Jun were among the first backers. Alibaba, Foxconn, and IDG Capital were among the prominent Chinese and foreign investors. In 2018, Alibaba's vice president Joseph Tsai joined XPeng's corporate board of directors as part of a new funding round.
Starting in September 2018, XPeng's subsidiary in the United States, XMotors.ai, was granted permission by the California Department of Motor Vehicles to test self-driving automobiles. Due to XPeng's failure to file a disengagement report, the permission was canceled in February 2020. In March 2020, the California Department of Motor Vehicles extended XPeng Motors' Autonomous Vehicles Testing Permit.
In November 2018, XPeng began manufacturing its first vehicle, the XPeng G3 SUV. The G3 was unveiled during the 2018 Consumer Electronics Show in Las Vegas in December 2018.
The P7, a four-door electric vehicle, made its debut at the 2019 Auto Shanghai exhibition in April 2019 and began deliveries to consumers in June 2020.
XPeng began a vehicle-for-hire firm in Guangzhou in May 2019 with its own vehicles.
XPeng raised $400 million in the third financing round in November 2019, with Xiaomi joining as a strategic investor. XPeng secured $500 million in July 2020 from Aspex, Coatue, Hillhouse Capital, and Sequoia Capital China, among others. XPeng raised a further $400 million in August 2020 from a group of investors that included Alibaba, Qatar Investment Authority, and Mubadala, Abu Dhabi's sovereign wealth fund.
XPeng raised $1.5 billion in an IPO on the New York Stock Exchange on August 27, 2020, with its shares rising more than 40% on the first day of trade. Guangdong Yuecai Investment Holdings Co. invested $76.9 million in the company in March 2021.
XPeng's revenue increased by over 500 percent year over year in the third quarter of 2021. In the previous year, it had also increased its R&D personnel by nearly a third.
XPeng began exporting its premium P7 sedan for the first time in 2021. Norway was the company's first overseas market, which it entered in August. The company's P5 electric car also gained the ability to read traffic signs in August.
He Xiaopeng owns 23 percent of XPeng shares and Alibaba Group owns 12 percent as of May 2021.
XPeng released the XPeng P5 in September 2021, making it the first commercial automobile with lidar sensors for ADAS.
XPeng's subsidiary HT Aero announced $500 million in investment and the design for a flying automobile in October 2021, with a launch date of 2024.
*Last Update: December 2021. Source: Wikipedia