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Why Xpeng Stock Is Higher Today

By John Rosevear - Jan 4, 2021 at 12:00PM

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December was a good month to be selling stylish electric cars in China.

What happened

Shares of Chinese electric-vehicle maker Xpeng ( XPEV 5.66% ) were trading higher on Monday after the company reported record deliveries in December.

As of 11:52 a.m. EST, Xpeng's American depositary shares were up by about 8.7% from Friday's closing price.

So what

Xpeng said that it delivered 5,700 vehicles in December 2020, up from 4,224 in November and an increase of 326% from December 2019. Of that total, 3,691 were P7 sedans -- another sales record for the model -- and 2,009 were the company's compact G3 SUVs. 

Since its launch in late June, the Xpeng P7 has become something of a hit product in the upscale-electric-vehicle niche that is catered to by rivals Tesla, NIO, and Li Auto in China. Xpeng delivered just over 15,000 P7s in 2020, and recently introduced a limited-edition "Wing" version to boost consumer interest. 

A lime-green Xpeng P7 Wing, a sleek electric sedan.

Xpeng's limited-edition P7 Wing has Lamborghini-like "wing" front doors. Image source: Xpeng.

Why was Xpeng's stock trading higher Monday morning? Because those are all good numbers. 

Now what

Xpeng is expected to report its fourth-quarter and full-year financial results to auto investors in mid-February. If the company's sales figures are any indication, the results should be good: For the fourth quarter, Xpeng delivered 12,964 vehicles, up 303% year over year and up 51% from Q3 2020. 

For the full year, Xpeng delivered 27,041 vehicles, up 112% from 2019. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

XPeng Inc. Stock Quote
XPeng Inc.
$46.28 (5.66%) $2.48
Tesla, Inc. Stock Quote
Tesla, Inc.
$1,009.01 (-0.59%) $-5.96
NIO Inc. Stock Quote
NIO Inc.
$32.34 (0.59%) $0.19
Li Auto Inc. Stock Quote
Li Auto Inc.
$30.51 (7.05%) $2.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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