Chinese luxury electric vehicle maker Xpeng stock published its delivery numbers for July, indicating that it sold a total of 11,008 vehicles. This marks a 4% decline year-over-year, although it is a 28% increase over the prior month, marking the company’s sixth consecutive month of delivery growth. Xpeng continues to lag behind its rivals Nio and Li Auto. Nio delivered 20,462 EVs for the month, marking an increase of almost 104% year-over-year and roughly double the June figure of 10,707 vehicles. Li Auto delivered 34,134 vehicles for the month, up by 228% versus the last year.
While uptake for Xpeng’s vehicles was sluggish earlier this year, amid mounting competition from EV bellwether Tesla
TSLA
So, is Xpeng stock a buy at current levels of about $18 per share? Competition in the market is expected to remain stiff. For example, rival Nio just carried out sizable price cuts on its vehicles last quarter. Xpeng’s financial performance has also been tough. For Q1, the company’s net losses were wider than expected, while gross margins came in at a mere 1.7%, down from 12.2% in the year-ago period. Xpeng also trades at about 4x forward revenues, which is ahead of Nio and Li Auto, which are both seeing faster revenue growth. Considering this, we think the stock could continue to face pressure in the near-term. See our analysis of Nio, Xpeng & Li Auto: How Do Chinese EV Stocks Compare? for a detailed look at how Xpeng stock compares with its rivals Li Auto and Nio.
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