XPeng Motors (NYSE: XPEV) finished trading on Tuesday at $36.74 up $0.15 (0.41%), but it is down $1.66 (-4.32%) over the last five days.
Shares of the Chinese electric automaker fell earlier in the week due to fears about the Chinese economy as a potential default on $300 billion debt by Chinese real estate developer Evergrande could have worldwide economic and financial market ramifications, even on the cryptocurrency market.
Recent developments have been less than encouraging: both the medium and short-term time horizons, therefore, show unfavorable signals. Over the last month, XPEV has been trading in the $36.01 – $42.50 range, which is quite wide, and it is currently trading near the lows of this range. At the moment, there is not a quality setup, although prices have been consolidating lately.
When analyzing the support, we notice a critical area at $34.69 from a horizontal line in the daily time frame. Conversely, a resistance zone ranging from $38.90 to $39.96 is formed by a combination of multiple trend lines and important moving averages in multiple time frames.
Even while electric car shares have fared well in recent years, they are not immune to the drop. XPEV is trailing the market slightly, currently trading in the middle of its 52-week range; meanwhile, the S&P 500 Index is trading in the upper part of its 52-week range.
Overall, XPEV has outperformed 91% of the other 24 companies in the Automobiles industry. When looking at the yearly performance of all stocks, we can see that XPEV is one of the best performers, outperforming 86% of the market thanks to gains made around ten months ago.
Wall Street analysts ratings
Despite the growing fears of a default by Evergrande, 6 Wall Street analysts projected an average price forecast of $56, with a high of $72 and a low of $46 for Xpeng over 12 months. The average price estimate implies a 52.42% upside from the most recent price of $36.74.
Furthermore, based on the price projections of 6 TipRanks experts’ stock recommendations for XPEV over the last three months, all six analysts advise to ‘Buy, ‘while none favor ‘Hold, ‘or ‘Sell.’
Based on their recommendations, the consensus rating for XPEV stock is a ‘strong buy,’ with a 52.42% upside, making it an attractive buy for both traders and investors, as even their lowest price projection of $46 is greater than Xpengs current price of $36.74.
International EV market
Elon Musk praised China’s domestic electric vehicle manufacturers on Friday, calling the country’s automakers “the most competitive in the world.”
Chinese electric carmaker Xpeng began shipping its flagship P7 sedan to Norway on Tuesday, August 24, its first international market. Similar to Nio Inc (NYSE: NIO), which will open its first NIO House in Norway on September 23 in Oslo, Chinese electric carmakers are showing ambitions to expand internationally.
It is worth noting that between Q2 2020 and Q2 2021, demand for new passenger battery electric (all-electric) cars in Europe grew 231.58%, going from 63,422 to 210,298. According to our figures, the demand for all-electric vehicles has tripled for the period.
In addition, Xpeng’s Return On Investment (ROI) increased by 75.47% between June 22, 2020, and June 22, 2021, and while it has not exceeded all rival firms in the industry, it is still in the top six in terms of ROI.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.