How to Buy XPeng Stock
Last Updated: January 11, 2023
Albert Einstein once said, “You can’t solve a problem on the same level that it was created. You have to rise above it to the next level”.
What one of human history’s brightest minds tells us is that you can’t solve problems if you stick to the same type of thinking that led to the problem in the first place. You need to research and develop.
XPeng spent $265 billion on Research & Development (R&D) in 2020. Does this fact ignite your curiosity and maybe even make you wonder how to buy XPeng stock?
Essentially, what does a company’s R&D spend tell you about its business?
Experts argue this indicates a company’s hunger to withstand competition and counter waves of disruption and obsolescence. R&D also allows companies to be more innovative than their peers, culminating in better products and services.
So is that what XPeng achieves?
This article is an XPeng prospectus. It covers the company in great detail. It will also help you establish whether investing in the company is the right move for you and your portfolio.
About the Company
XPeng Motors is a Chinese Electric Vehicle (EV) manufacturer. The company designs and manufactures smart EVs integrated with advanced Artificial Intelligence (AI), internet, and driver assistance technologies.
The company is based in Guangzhou and has offices in Mountain View, California.
XPeng was founded in 2014 by Xia Heng and He Tao — both former senior execs at GAC Group. UCWeb Founder & current XPeng Chairman He Xiaopeng and Xiaomi founder Lei Jun were the company’s initial investors. They are also recognized as co-founders.
Following a further funding round in 2018, Joseph Tsai, Alibaba’s Vice President, joined XPeng’s corporate board. XPeng also counts Alibaba, IDG Capital, and Foxconn as its investors.
As of February 24, 2022, XPeng’s valuation was $31.28 billion.
XPeng is dual-listed on the New York Stock Exchange (NYSE) and the Stock Exchange of Hong Kong (HKEX).
The company debuted on the NYSE at $15 per American Depository Share (ADS) in August 2020 under the XPeng stock symbol or ticker — XPEV.
The markets reacted positively to the listing as XPeng’s stock soared 41% from its IPO price.
XPEV’s IPO at NYSE raised $1.5 billion against an initial target of $1.11 billion. A higher-than-expected demand from investors triggered the surge.
Currently, the electric vehicles manufacturer counts as one of the more than 250 Chinese stocks listed on US markets.
In June 2021, XPeng received a green light to dual list on the HKEX. XPeng also subscribed to the stock connect scheme, allowing investors from mainland China to buy shares in the company.
The XPeng Motors IPO was catalyzed by a need to raise $2 billion to level up amid cutthroat competition both in China and on the global scene.
Should You Buy XPeng Stock?
Let’s run through some facts.
- In 2017, XPeng had a market share of 0%. The company didn’t sell a single unit during that year.
- In 2018, XPeng still had a market share of 0.00% but sold 371 units.
- The company finally blew up in 2019, selling 16,708 units representing a 4,376.55% growth YoY. This pushed the manufacturer’s market share to 0.08%.
- Stock markets rallied following XPEV’s debut.
- In 2020, the company sold 98,155 units representing a 263.46% growth. At this juncture, XPeng’s market share had grown to 0.47%.
- For further perspective, the manufacturer’s sales grew from 39 units in January 2018 to 16,000 units in December 2021.
XPeng Solid Growth
Xpeng was one of the top three electric vehicles stocks to watch in Q1 2022 backed by an Investors Business Daily (IBD) Composite Rating of 36.
An XPEV stock analysis by The Motley Fool also pointed out that XPeng is well poised to grow even if it maintains its current market share. As per the publication, the growth will be catalyzed by the company’s range of products and customer response.
XPeng Analyst Ratings for the first quarter of 2022 overwhelmingly recommended “buy”.
However, the EV manufacturing industry in China is very competitive. SupChina ranks XPeng seventh in the list of top 10 players in this space.
The company still trails Tesla, BYD, Saic Motor, Saic Volkswagen, GM- Wuling, and NIO.
XPeng Stock Performance
The XPEV ticker hit its peak in November 2020 with a stock price of $72.17 and a market capitalization of $53.02 billion.
This was attributable to an announcement revealing technology upgrades in select EV models.
Xpeng’s revenue has also been steadily rising since 2018 making it one of the top electric vehicle companies to invest in.
The company’s revenue shot up to $2.63 billion in 2019 from $11.5 million in 2018. The growth continued in 2020 when the company booked its highest-ever revenues of $6.6 billion.
Despite the strong growth in sales, XPEV earnings have been negative.
XPeng’s annual Earnings Per Share (EPS) for 2020 was $-1.98. This was a 49.5% tumble from 2019 when $-3.92 was booked. The trend also manifests itself in the company’s quarterly numbers.
Between 2017 and 2021, Xpeng posted a quarterly maximum EPS of $-0.153 and a minimum of $-.07308.
Third Quarter 2021 Financial Highlights
XPeng continued its impressive financial performance in the third quarter of 2021.
The company booked $887.7 million in total revenues representing a 187.74% increase YoY. The revenues surpassed Wall Street projections of $813.5 million.
During the period under review, XPeng set a quarterly record for vehicle deliveries. The delivery count stood at 25,666, which was a 47.5% increase from the third quarter of 2020.
The cost of operations also shot up by 158% to $760.3 million from RMB 1898.6 million. Operational losses, on the other hand, increased to $279.8 million from the RMB 1744.2 million reported the previous year
Despite the revenue growth, net losses widened to $247.5 million from $180 million the previous year. The increase in losses was attributable to increased R&D spending.
The electric vehicle manufacturer’s stock is not volatile. This is espoused by its range during regular hours versus its performance after the closing bell.
On February 23, 2022, the stock traded at $34.35 or 77.6% higher than the XPeng IPO stock price.
On the same day, XPEV’s after-hours numbers were:
- High — $34.21
- Low — $33.60
XPeng after-hours volumes stood at 229,464.
Over the same period, analysts offering a 12-month XPeng stock forecast predicted:
- A high of $92.71
- A median of $67.16
- A low of $27.37
As an investor mulling over the right picks for a portfolio, you should always abide by the rule that predicting financial performance is difficult.
Therefore, a diversified portfolio gives you a much better chance of avoiding devastating declines. It will also help you build a solid base to realize your financial goals.
Having observed that, the growth streak achieved by XPeng presents an opportunity to add a fast-growing automobile stock to your basket. A favorable XPeng forecast should encourage you.
However, before purchasing XPeng, scan your portfolio for similar stocks. This should help you decide whether it will be a sensible move.
How to Buy XPeng Stock
Unlike companies like Coca-Cola and Walmart, XPeng does not have a Direct Stock Purchase Plan. The only way to acquire XPeng stock is through a broker.
Let’s go through the steps of buying XPeng stock:
1. Choose a trading platform.
To become an XPeng investor, you will need to find a suitable trading app. There are plenty of options in the market tailor-made for different types of investors.
When scouting for a broker, there are a couple of essential things you should look out for. These include:
Commission-free trading: There is no need to rake in fewer profits by paying commissions when you do not have to.
Several online stockbrokers offer commission-free trading. For instance, XPeng stock trading is commission-free on Robinhood.
Other brokerage firms that offer this incentive include:
- TD Ameritrade
- Charles Schwab
Low account fees: Brokers charge different rates to operate an account. This is one of the things you should keep an eye on.
Real-time data and charts: Some online stockbrokers charge a subscription fee for premium services such as real-time XPEV stock charts and forecasts.
Free data is not ideal since it usually comes from one provider. It also tends to be unreliable, inaccurate, or time-barred. This leaves traders at a disadvantage since they cannot see all price movements occurring in the stock or Exchange Traded Fund (ETF). Brokers also delay quotes by 15 seconds for free accounts.
Therefore as an investor, you might have to pay to be furnished with usable real-time material.
Fractional share trading: Some online stockbrokers also allow traders to leverage fractional share trading, which suits traders with modest capital.
This means that an investor can purchase a fraction of a share to minimize risk. If such an arrangement works for you, it will make sense to go for such an account.
2. Fund your account.
The next step is loading your account with funds. Most brokers accept wire transfers and deposits from debit cards and escrow accounts.
3. Decide how much you want to invest.
Trading is characterized by risk. Therefore, it’s unwise to stake money you can’t afford to lose.
Trading 101 reiterates investors should not practice habits that will leave them in dire straits.
4. Choose an order type.
You will also need to familiarize yourself with the different order types that help traders protect their investment.
- A Market Order is designed to execute transactions at the prevailing market price as fast as possible regardless of how the market moves.
- A Limit Order sets the minimum and maximum price you are willing to buy stocks.
- Stop Limit Order sets the price to liquidate an investor’s position.
- Stop Loss Order sets the price instructing the broker to sell your position to stop further losses. This order is suitable for beginner traders yet to grasp the nitty-gritty of stock market trading.
5. Place an order.
Once you select the right order types to suit your financial position, log in to your account and place the order. Choose the XPeng ticker and key in the number of shares you wish to purchase.
You will then need to monitor XPEV’s stock market performance. Keep tabs on crucial factors such as changes in Lithium prices, US-China relations, and product announcements.
Despite the proliferation of online stockbrokers, many investors still depend on financial advisors to make decisions.
Financial advisors are a no brainer for several investors, namely;
- New traders
- Investors looking to bet big on a particular stock(s)
- Investors with a vast pool of assets
- Traders seeking specific advice
Financial advisors help investors craft their strategies. They also help investors diversify their portfolios to yield the best returns while complying with regulations.
Although financial advisors charge a fee ranging between $2,500 and $3,500, investing in professional advice is worth it.
Suppose you are unsure whether XPeng’s stock is overvalued and how it fits in your portfolio. A professional will look at the metrics such as the XPEV stock forecast and advise you whether it’s feasible.
Tailored advice from a professional will save you time by narrowing down the list of EV stocks to invest in.
At the Cop-26 climate summit in November 2021, United Nations (UN) Secretary-General Antonio Guterres accused humankind of “treating nature like a toilet.”
He arrived at the summit in an electric bus to hammer his point, insisting the future of automobile manufacturing does not include fossil fuels.
XPeng happens to be right on time. Backed by rising sales, the company is on a solid footing to realize solid returns for investors in the future.
There is always the caveat that nothing is guaranteed in stock market trading.
Doing your homework on XPeng will inform the optimal times to initiate an XPEV stock buy or sell, how much to spend, and the volumes to purchase.
Once you do this, you can put your money where your mouth is.
XPeng is a Chinese Electric Vehicles (EV) manufacturer headquartered in Guangzhou.
Alibaba Holding Group Limited is the largest shareholder in the automobile manufacturer, with 22% of shares outstanding.
The top 4 XPeng shareholders own 51% of the company.
XPeng Motors is registered on the NYSE under the stock ticker XPEV. As a dual-listed company, XPeng is also trading on the Hong Kong exchange under the stock code 9868.
The answer to this question depends on your financial objectives and the company’s stock performance.
Is your portfolio too heavy on one industry’s stock? Do you need to diversify? Always do your research and keep an eye on XPeng stock predictions.
Yes, you can. XPEV stock is listed on the NYSE. And if you want to know how to buy XPeng stock on the Hong Kong Exchange, look up the 9868 stock code.