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XPeng stock drops 11% despite showcasing flying cars and new robots; Here’s why

XPeng stock drops 11% despite showcasing flying cars and new robots; Here's why
Dino Kurbegovic

Chinese electric vehicle stocks plunged on Monday, October 24, following panic selling aftermarket participants digested the latest numbers for the Chinese economy. In addition, a power move by president Xi has investors worried that more centralized power of China’s president could spell trouble for the markets. 

XPeng (NYSE: XPEV) stock lost over 11% in the trading session, despite showing off promising technological advances in robotics and flying vehicles at their XPeng tech day on October 24. 

Namely, the firm recently completed its first global public flight with its X2 vehicle and the company also showcased a test flight of the roadable eVTOL flying car designed and built by an XPeng affiliate XPeng Aeroht. 

XPEV chart and analysis

Analyzing XPeng’s performance in the market, the short-term trend is negative, as is the long-term trend, where 98% of all other stocks performed better in the past year than XPEV. Over the past month, the stock traded in a wide range from $6.25 to $14.80, staying below daily moving averages, while technical analysis shows a resistance zone from $8.10 to $8.14.

XPEV 20-50-200 SMA lines chart. Source. data. See more stocks here.

Analysts rate the stock a ‘strong buy,’ with price predictions for the next 12 months seeing a potential increase of 525.56% from the current trading price of $7.16 to a potential price of $44.79 per share. Furthermore, out of the 11 TipRanks analysts covering XPEV, nine have a ‘buy’ rating, and two have a ‘hold’ rating.  

Wall Street analysts’ price targets for XPEV. Source: TipRanks

Despite having a solid showcase day, where XPeng flexed its creative muscle in vehicle flight and robotics, the stock got punished by investors, as the sentiment on investing in China or Chinese companies soured quickly. Further, analysts recently predicted a potential 460% upside to XPEV following their technological advances.

For investors looking to get into the stock, staying on the sidelines, for now, to gauge the market’s reaction to Chinese companies in the next few days would be the best thing to do. 

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