XPeng Inc. has been operating as an electric vehicle (EV) manufacturer in China since 2015. (XPEV:NYE) is ready to announce its Fiscal Q2 2023 financial results ahead of market opening on August 18 today. This article will let you into the deeper aspects of Xpeng’s past and future performance.
The company is expected to show an adjusted loss of $0.30 per share on revenues of $693.18 Million in Q2 2023. In the same period last year, XPeng recorded an adjusted loss of $0.43 per share alongside revenues of $1.11 Billion. However, the company’s past track record of failing to reach the expectations may persist.
Challenges Faced by the EV Market
The electric vehicle (EV) sector is going through a number of challenges including increasing interest rates and the ongoing price battle by industry giant Tesla (TSLA:NSD). With lesser consuming power and import export challenges now, the Chinese economy shows signs of instability and gradual collapse. The economy mostly weakened over July 2023 and it might take some time to regain it.
XPEV Stock Shares: Faces More Hurdles
XPeng is facing intense competition along with other multiple challenges. The Vice President of Autonomous Driving, Dr. Xinzhou Wu recently resigned from his position. This has brought the XPEV shares down further.
The company witnessed a shallow drop as it failed to meet the figure expectations of vehicle deliveries in July. However, XPeng is ambitious in its future goal to increase its deliveries to 15,000 units in Q3. Moreover, in the fourth quarter of 2023, the company aims to deliver 20,000 units.
Striking Partnerships Amidst Challenges
XPeng has not lost hope in the face of challenges. Auto giant Volkswagen (VOW:F) recently invested $700 million into XPEV stock, acquiring a 4.99% stake in the EV manufacturer.
Additionally, XPeng and Volkswagen have joined hands in partnership to make two B-class BEVs (Battery Electric Vehicles) for the Chinese market. Wall Street analysts welcomed the news and revised their outlooks on XPEV shares. A sudden upgrade in price target was witnessed as well.
The EV giant Tesla has recently taken multiple initiatives to cut down costs and increase their sales. Both of the companies are set to challenge their rival Tesla through these collaborative efforts.
XPEV Stock Forecast: Analyst’s Insights
Analysts projected an average price target of USD 13.88, reflecting a potential 11.29% downside for the XPEV stock. Whereas, the current price of the stock is USD 15.65. XPEV stock has surged by 53.1% year-to-date. The market CAP of XPeng is USD 15.11 Billion.
The projected earnings for the stock lies around +/-8.08%. Comparatively, in Q1 2023 results, the stock saw a decline of 5.05% which fell short of predictions yet again. It is high in volatility but has had superior revenue growth in the past 5 years. The analysts’ consensus view the stock as bearish and rate it as “BUY”.
The Takeaway
As XPeng strives to boost EV deliveries during these challenging conditions, the path ahead remains marked by uncertainties. The recovery of the Chinese economy might be a gradual journey. It is expected to be potentially driven by the measures being taken to revive domestic demand and EV consumption. During this turbulent period, the analysts on Wall Street maintain a cautiously optimistic outlook for XPeng’s future performance.
