What happened
Shares of XPeng (XPEV 10.73%) gained 38.3% in June, according to data from S&P Global Market Intelligence. Electric vehicle (EV) stocks generally rallied last month, and the China-based automaker also appears to have gotten a boost thanks to strong vehicle delivery numbers and signs that the global semiconductor shortage may be easing.
Growth-dependent tech stocks made solid gains in June, pushing the tech-heavy Nasdaq Composite index upward by roughly 5.5%. Chinese EV stocks enjoyed a particularly robust performance last month: NIO and Li Auto saw their share prices climb by roughly 37.8% and 50%, respectively.
Image source: XPeng.
So what
Chinese EV stocks' gains last month were driven in part by strong vehicle delivery numbers from the major players. XPeng announced on June 1 that it had delivered 5,686 vehicles in May, up from the 5,147 vehicles that it delivered in April.
XPeng's share price likely also got a boost from comments made by NIO, which issued an update stating that the global semiconductor shortage would not impact its ability to deliver between 21,000 and 22,000 vehicles in the second quarter. Difficulty sourcing chips has been presenting significant challenges to automakers, but that assertion from XPeng's rival suggests the outlook on that front may be improving.
Now what
XPeng stock gave up a bit of ground early in July, dipping 2.2% on Thursday, the month's first day of trading.
That dip came despite the company's improving vehicle delivery numbers. XPeng announced Thursday that it had delivered 6,565 vehicles in June. That brought its second-quarter vehicle delivery total to 17,398, up 439% compared to the prior-year period.
The company now has a market capitalization of roughly $35.1 billion and is valued at 15.7 times this year's expected sales. XPeng's growth-dependent valuation leaves its share price predisposed to volatile swings, but the automaker has established a strong position in a segment of the industry that looks poised for big growth over the long term. For investors seeking exposure to China's EV market, XPeng stock is worth keeping an eye on.
