XPEV stock rises after XPeng records 78% growth in May deliveries YoY

On June 1, 2022, XPeng (NYSE: XPEV) released its vehicle delivery results for the month of May, 2022. The company managed to deliver 10,125 Smart electric vehicles (EVs), which represents a month-on-month (MoM) increase of 12.5%, and a year-on-year (YoY) increase of 78%. 

In short, the deliveries consisted of 4,224 P7 smart sport sedans, 3,686 P5 smart family sedans, and 2,215 G3 smart compact SUVs. 

Meanwhile, in pre-market trading, the shares are up 1.62%, after closing the last trading session in May also in green by over 4%.

Continuous upgrades

Equally important, XPeng resumed double-shift production at their Zhaoqing plant as China is starting to slowly open up from the recent Covid-related lockdowns. The company also plans to launch soon their ACC-L and LCC-L via over-the-air updates. These will represent the first, in the industry, adaptive cruise control and lane center functions adopting camera and LiDAR perception.

Similarly, the company announced in their Q1 earnings that they expect deliveries for Q2 to be between 31,000 and 34,000 vehicles, estimating that in June they could deliver around 19,127 vehicles.

Chart and analysis     

On the whole, shares are down over 53% year-to-date (YTD), and on the daily chart, multiple bottoms have been identified, which could signal a reversal in the current price action. Trading volumes have been steady with the stock just crossing the 20-day Simple Moving Average. 

At the same time, analysts on Wall Street deem the shares a strong buy. For the next 12 months, the average price they see for the shares is $39.41, which represents a potential increase of 67.70% from the current trading price of $23.50.

As revealed by the delivery report and recent price action, XPEV seems to be catching a break. A similar fate was witnessed in Nio (NYSE: NIO), which just received an upgrade from an analyst citing positive development in China. 

Shareholders of the company might have reasons to be happy as it seems that the promised deliveries could be met. Stimulus prepared for the Chinese economy by their government could further boost the stock if XPeng continues to produce and deliver their vehicles.  

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