XPEV

XPeng Inc - ADR

Industrial/Transportation


Presented:08/31/2022
Price:$18.52
Cap:$12.04B
Current Price:$11.16
Cap:$8.63B

Presented

Date08/31/2022
Price$18.52
Market Cap$12.04B
Ent Value$23.04B
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S650.02M
Ave Daily Vol11,070,399
Short IntN/A

Current

Price$11.16
Market Cap$8.63B
XPeng, Inc. designs, develops, manufactures, and markets smart electric vehicles. It produces environmental friendly vehicles, namely SUVs (the G3), and a four-door sports sedan (the P7). The company was founded by Xiao Peng He, Heng Xia, and Tao He in 2015 and is headquartered in Guangzhou, China.

Publicly traded companies mentioned herein: Li Auto Inc (LI), Nio Inc (NIO), Tesla Inc (TSLA), XPeng Inc (XPEV)

Highlights

The presenter is short shares of XPeng Inc (XPEV), a pure play battery and EV startup out of China with a $15B market cap that is at risk of losing market share in the increasingly competitive EV space given its lack of brand equity or marketing presence. Further, the hybrid industry is heavily disintermediating the EV space in China as OEMs are able to sell cheaper models that offer better range, and XPEV’s 3 available models all fall victim to this trend with high sticker prices and relatively worse range. As this is not yet a profitable industry, EV startups in China largely trade on a Price/Sales multiple, so the presenter’s 25% - 30% downside on next year’s sales should drive the stock down by roughly an equivalent magnitude, if not more.

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Idea Discussion

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