XPeng said that electric vehicle (EV) deliveries in February dropped to 2,223 due to the week-long Chinese New Year holiday. That’s after the Chinese EV maker handed over a record 6,015 EVs in January.
Specifically, XPeng (XPEV) reported that total February deliveries consisted of 1,409 of its P7 smart sports sedans and 814 of its G3 smart compact SUVs.
“February deliveries reflect the anticipated seasonal decline in deliveries due to the slowdown in the week-long Chinese New Year holiday,” XPeng stated. “The company is witnessing robust customer demand as sales and delivery activities resumed after the holiday.”
During the months of January and February, vehicle deliveries jumped 577% year-over-year. XPeng handed over a total of 20,181 of its P7 vehicles since the launch in the second quarter of 2020.
The EV maker has been shoring up its cash coffers in recent months, including this year’s $2 billion credit line from commercial banks. In December, the company raised about $2.5 billion by selling American depositary shares (ADS) at $45 a piece in what marked the first public follow-on offering since its initial public offering (IPO) in August 2020.
The fund raising comes as the Chinese EV maker is working on its international strategy following the launch of its first production model in Norway.
XPEV, which began trading on the New York Stock Exchange in August after its $1.7 billion IPO at a price of $15 per ADS, closed 4.1% higher at $35.50 on March 1. The stock has pulled back this year and plunged 28% over the past month as a lockup period on sales following its IPO expires. (See XPEV stock analysis on TipRanks)
Nonetheless, Deutsche Bank analyst Edison Yu on Jan. 21 assigned a “Catalyst Call: Buy” on XPEV as a short-term investment idea, citing “several catalysts in the coming months” for the shares, which he argues could gather “some upward momentum.”
Yu kept a Buy rating on the stock with a $58 price target as he is impressed with the “positive media and investor feedback” from the test drives of XPeng’s new navigation guided pilot L3 functionality. The analyst believes that the XPILOT 3.0 system will be the best consumer autonomy system on the Chinese market for probably at least the rest of the year.
XPEV has picked up 4 Buys, 2 Holds, and 1 Sell which add up to a Moderate Buy consensus rating. That’s alongside an average analyst price target of $54.58, implying a promising 54% upside potential lies ahead over the coming year.
On TipRanks’ Smart Score ranking system, XPENG gets a 7 out of 10, which indicates that the stock is expected to perform in line with market averages.
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