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Why XPeng Stock Skyrocketed 203.2% in November

By Keith Noonan - Dec 6, 2020 at 6:16PM

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The electric vehicle stock hit a new all-time high last month.

What happened

Shares of XPeng ( XPEV 2.85% ) rose 203.2% in November, according to data from S&P Global Market Intelligence. The electric vehicle stock posted big gains thanks to strong vehicle delivery numbers, favorable coverage from analysts, and a better-than-expected third quarter results. 

^SPX Chart

^SPX data by YCharts

XPeng published vehicle delivery data on Nov. 2, revealing that it had delivered 3040 vehicles in October -- an increase of 229% year over year. The strong deliveries update was followed by positive coverage from analysts, an impressive third-quarter report later in the month, and the unveiling of new autonomous-driving software. 

An XPeng electric vehicle driving on a snowy road.

Image source: XPeng. 

So what

Citi analyst Jeff Chung published a note on XPeng stock on Nov. 4, initiating coverage on XPeng stock and giving it a "buy" rating. Chung also gave the stock a one-year price target of $34.70 per share. JPMorgan's Nick Lai then published a note on Nov. 9, maintaining an "overweight" rating on the stock and raising his price target on the stock from $27 to $43 per share.

XPeng published third-quarter results on Nov. 12, posting sales that came in ahead of Wall Street's target but earnings that fell short of the market's expectations. The EV company posted a non-GAAP (adjusted) loss per share of $0.32 on revenue of $293.1 million, while the average analyst target had guided for an adjusted loss of $0.18 per share on sales of $278.74 million. XPeng delivered 8,578 vehicles in the quarter, up 265.8% year over year. 

The electric-vehicle specialist also revealed its next-generation autonomous driving software at the Auto Guangzhou expo on Nov. 20, which appears to have driven substantial gains for the stock. 

Now what

XPeng stock has dipped early in December's trading despite a strong monthly deliveries report published early in the month. The company's share price is down nearly 6% in the month so far. 

^SPX Chart

^SPX data by YCharts

XPeng published vehicle delivery numbers on Dec. 1. The company revealed that it had shipped 4,224 vehicles in November, up 342% year over year. That brought the company's year-to-date deliveries to 21,341, an increase of 87% year over year. Despite the strong deliveries report, XPeng stock has moved lower this month amid a broader sell-off for foreign EV stocks driven (at least in part) by Hindenburg Research's skeptical note on Kandi Technologies

XPeng has a market capitalization of roughly $35 billion.

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Stocks Mentioned

XPeng Inc. Stock Quote
XPeng Inc.
XPEV
$45.05 (2.85%) $1.25
Kandi Technologies Group, Inc. Stock Quote
Kandi Technologies Group, Inc.
KNDI
$3.55 (6.29%) $0.21

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