Xpeng Inc (NYSE: XPEV) has picked International Motors Ltd (IML) as its official distributor in the United Kingdom.
Shares of the electric vehicle company are up 5% on Tuesday.
IML brings 50 years of expertise in vehicle distribution to Xpeng as it continues to pursue global expansion and deliver “AI-driven sustainable mobility solutions worldwide.”
Xpeng stock is now up more than 100% since early August.
What IML deal means for Xpeng stock
The UK has been investing rather aggressively in charging infrastructure as part of its commitment to fully shift from gas-powered vehicles to EVs by the end of this decade.
With the planned launch of the G6 mid-size coupe SUV, Xpeng will likely be able to benefit from the government’s aforementioned push. Alex Tang – its head of international business said in a press release today:
With a vision for AI-defined mobility, we aim to revolutionise the driving experience in the UK, making it safer, smarter, more sustainable and more pleasant in the near future.
Xpeng recently debuted a flying vehicle and unveiled a humanoid robot to reiterate just how serious it is to go head-on with Tesla Inc.
Note that Xpeng stock is still slightly down versus the start of 2024.
Xpeng reports solid third-quarter earnings
Xpeng is in focus this morning also because it reported better-than-expected financial results for its third quarter on continued demand and price competition that did not get any worse.
The EV maker lost 14 cents on a per-share basis versus the 30 cents that analysts had forecast.
An 18% annualized growth in revenue to $1.4 billion, however, was roughly in line with the FactSet consensus.
Also a positive was the company’s gross profit margin which climbed to 15.3% in Q3 – 170 basis points better than experts’ forecast.
Xpeng saw a 16% year-on-year increase in vehicle deliveries and touted Volkswagen’s collaboration as a growth accelerator on Tuesday.
The electric vehicle company guided for $2.2 billion in sales for the fourth quarter today – a tad above the Street at $2.1 billion.
Xpeng stock does not pay a dividend in writing.
Is it too late to invest in Xpeng stock?
Despite the recent rally, it may still not be too late to invest in Xpeng stock considering Wall Street continues to rate it as “overweight”.
In fact, Morgan Stanley analyst Tim Hsiao has a $17 price target on shares of this EV maker that indicates potential for another 25% upside from here. He’s convinced that Xpeng is well-positioned to tap into the next AI megatrend.
Hsiao expects XPEV to benefit as the Volkswagen deal continues to unravel.
International expansion and the launch of new models will unlock further upside for this EV stock as well, he told clients in a research note this week.
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