From Nasdaq:

Chinese electric vehicle (EV) maker Xpeng Motors (XPEV) saw its stock fall sharply from its 2023 highs, with shares down over 14% so far this year and over 23% in the last three months. Last year, the company made progress, including new platform announcements and partnerships with other companies. However, the stock’s price does not reflect these advancements, trading at less than 1.5x its projected 2024 revenues.

The continued sell-off in Chinese stocks and overall pessimism towards Chinese shares, due to the mainland’s faltering economy, has contributed to the drop in Xpeng Motors stock. Reports of Alibaba selling its stake in XPEV have also impacted the stock’s performance negatively.

Xpeng Motors’ success in 2024 will hinge on transitioning from announcements to execution. While the company has made impressive strides in deliveries and is set to launch its “MONA” brand, it needs to scale up deliveries meaningfully and improve its margins significantly to keep up with competitors.

Analysts have given Xpeng Motors a “Moderate Buy” rating, with a mean target price of $18.02, 43.8% above current prices. The company is among the growth stocks that could potentially double in 2024, but the macroeconomic environment and the overall Chinese economy remain factors to watch.

Despite the increased risks of investing in Chinese stocks, Xpeng Motors presents an attractive risk-reward opportunity and is considered a good buy at current prices.



Read more: Is Beaten-Down Xpeng Motors Stock a Buy Ahead of Make-or-Break 2024?