Xpeng Share Price Forecast September 2021 – Time to Buy XPEV?
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Shares of the leading Chinese electric vehicle manufacturer XPeng (NYSE: XPEV) are in the green today, after closing at $40.75 on August 30th (19:59 UTC-4). With the release of their second-quarter earnings recently, revenues have seen to be increased by 536 per cent to $582.5 million year-over-year. In the face of rising demands for electric vehicles, EV manufacturers have reported increased sales volume which is evident in the recent growth in Xpeng shares.
Xpeng – Technical Analysis
According to the financial statement from Xpeng, the market cap of the company is at $33.836 billion with total assets worth $7.165 billion. Revenue for 2020 was at $846.73 million compared to $335.93 million a year ago.
Moving averages for Xpeng such as Exponential Moving Average (10) (40.20), Simple Moving Average (10)(39.64), Exponential Moving Average (20)(40.25), and Simple Moving Average (20)(40.63) are pointing towards buying. Oscillators such as Relative Strength Index (14)(51.83), Stochastic %K (14, 3, 3)(63.03), Commodity Channel Index (20)(5.95), and Average Directional Index (14)(10.71) are neutral.
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In the second quarter of 2021, Xpeng had a gross profit margin of 11.9 per cent, contrasted to a negative margin of 2.7 per cent in the second quarter of 2020. The gross margin rose significantly as the Chinese EV manufacturer achieved a gross profit margin of 11.2 per cent in the first quarter.
Xpeng’s total vehicle deliveries in the second quarter of 2021 hit 17,398, a new quarterly high, marking a 439 per cent growth year over year. Xpeng supplied 30,738 automobiles in the six months ending June 30, 2021, exceeding the overall number of vehicles delivered in the whole year of 2020. Xpeng has also started shipping its electric cars outside of China, with the first exports to Norway.
Xpeng is aiming to release at least two or three new vehicles every year starting in 2023, all of which will support XPILOT 3.0 or above. The EV manufacturer intends to release these upcoming new models, which will include hardware, software, and services, in both China and globally at the same time.
Should You Buy XPEV Shares?
The 200-day SMA or simple moving average has been crossed by Xpeng, signalling a bullish trend. The share, however, is seeing resistance around the 50-day SMA, which is now at $40.75. The MACD signal is indicating towards buying, while the 14-day RSI of 51.83 is neutral.
Xpeng’s forecast for the latest quarter is similarly positive, with the company expecting 21,500 to 22,500 deliveries in the third quarter, representing a sequential rise of more than 25% at the midpoint. Despite the fact that growth has reduced compared to previous quarters, it is safe to believe the forecasts are still reasonable, especially given the continuing semiconductor shortages that have slowed output across the automotive sector.
Furthermore, Xpeng’s expected growth is better than that of its competitor Nio, which has only indicated for 10% sequential increase at the midpoint of its Quarter 3 forecast. Xpeng’s volume might increase in the 4th quarter as the manufacturer prepares to begin delivery of its new P5 sedan, which is expected to be a higher-volume model. The share has risen more than 70% from its lows in mid-May to over $41, and it now trades at approximately 14 times the expected 2021 sales.
Overall, the EV sector has a strong potential, owing to the worldwide gradual shift from internal combustion engines towards electric vehicles. After a steep drop from its heights, Xpeng appears to be a promising EV share to purchase.
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