XPEV - Xpeng: The Moat Is Expanding
2024-07-01 10:06:24 ET
Summary
- Xpeng has been experiencing a choppy period, with investors spooked by the recent duties imposed by the US and provisional duties proposed by the EU on Chinese Electric Vehicles.
- Looking underneath the hood, the company has been quietly chipping away at improving their margins and narrowing their losses.
- A major catalyst for Xpeng in the coming quarters will be its continuing collaboration with VW, and the launch of new vehicles.
- The stock is now trading at a very low price to sales ratio of around 1.5 providing an opportunity for outsized gains.
- I issue a ‘buy’ rating on the stock with an expected price target of $15 with potential for further upside.
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Xpeng: The Moat Is Expanding