After receiving an investment from leading car manufacturer Volkswagen AG (OTC: VLKAF), XPeng Inc. (NASDAQ: XPEV) has become one of the hottest EV stocks in the market at the moment. Through this deal, the company’s cash balance will be boosted substantially which could allow it to further develop its ongoing projects – including the development of a new MPV. Moreover, this deal could aid XPEV’s plans to expand its presence in Europe by utilizing Volkswagen’s distribution network. Given the benefits of this investment for the company, the XPEV stock forecast might be bullish for the long term.
XPEV Fundamentals
Volkswagen recently invested $700 million in XPEV for a 4.99% stake in the Chinese EV manufacturer. This investment is part of a joint plan to manufacture two midsized SUVs inspired by XPEV’s G9 crossover SUV. These SUVs will be sold in China under the Volkswagen brand and production is expected to start in 2026. This could prove to be extremely beneficial for XPEV’s sales and profitability prospects since the company will start receiving “technology service revenue” from Volkswagen starting next year.
In addition to receiving revenue from this deal, XPEV’s cash balance will drastically increase from $1.2 billion as last reported in Q1 2023 to nearly $2 billion. In this way, the company would be able to improve its production capabilities since it is currently developing a new MPV in addition to plans to launch facelifted versions of its P7, G3, and P5 models. Based on this, the XPEV stock forecast could be bright for 2023 as the newly released versions may boost the company’s sales this year.
Another benefit of Volkswagen’s investment in the company is that XPEV may utilize Volkswagen’s resources including its relationship with European distribution centers. Expanding in Europe has always been a target of the company and it is currently available in Nordic countries in Europe. That said, the company now may be able to enter more lucrative markets like Germany for example which would substantially boost sales given the impressive technology the company’s vehicles boast. Since this investment appears to be a turning point for the company, the XPEV stock forecast appears to be bullish in 2023 and beyond which could see the stock continue climbing over the coming months.
Technical Analysis
XPEV Stock is in a neutral trend as it recently entered a sideways channel between $19.93 and $25. Looking at the indicators, the stock is above the 200, 50, and 21 MAs which is a bullish indication. Meanwhile, the RSI is overbought at 82 and the MACD is approaching a bearish crossover.
As for the fundamentals, the recent $700 million investment from Volkswagen is a major catalyst for the stock since it might help the company expand its presence throughout Europe which would lead to drastic revenue growth.
Meanwhile, XPEV has an upcoming catalyst in its Q2 earnings set to be released on August 23 which could send the stock running if the company shows improvement in its bottom line results. With the RSI overbought and with 2 gaps near $20.3 and $15.6, investors could wait for the stock to cool down and consolidate before entering a long position ahead of the company’s Q2 earnings.
XPEV Forecast
With the recent investment it received from Volkswagen, the XPEV stock forecast appears to be bright for the long term given the benefits it is set to receive from this deal. The first significant advantage of this investment is the $700 million the company will receive in exchange for a 4.99% stake in it. Through these funds, the company would be able to further develop its ongoing projects including the development of a new MPV and launching facelifted versions of its P7, G3, and P5 models.
Another advantage is that the deal will boost the company’s sales starting next year as it is set to receive technology service revenue from Volkswagen. In this way, the company may inch closer to profitability due to this new revenue stream. Meanwhile, the most important benefit of this deal is that it might allow the company to expand its presence in Europe and enter lucrative markets like Germany by utilizing Volkswagen’s distribution network. For these reasons, XPEV stock could continue its run until its Q2 earnings in late August given the bullish sentiment surrounding the deal.
XPEV Fundamentals
Volkswagen recently invested $700 million in XPEV for a 4.99% stake in the Chinese EV manufacturer. This investment is part of a joint plan to manufacture two midsized SUVs inspired by XPEV’s G9 crossover SUV. These SUVs will be sold in China under the Volkswagen brand and production is expected to start in 2026. This could prove to be extremely beneficial for XPEV’s sales and profitability prospects since the company will start receiving “technology service revenue” from Volkswagen starting next year.
In addition to receiving revenue from this deal, XPEV’s cash balance will drastically increase from $1.2 billion as last reported in Q1 2023 to nearly $2 billion. In this way, the company would be able to improve its production capabilities since it is currently developing a new MPV in addition to plans to launch facelifted versions of its P7, G3, and P5 models. Based on this, the XPEV stock forecast could be bright for 2023 as the newly released versions may boost the company’s sales this year.
Another benefit of Volkswagen’s investment in the company is that XPEV may utilize Volkswagen’s resources including its relationship with European distribution centers. Expanding in Europe has always been a target of the company and it is currently available in Nordic countries in Europe. That said, the company now may be able to enter more lucrative markets like Germany for example which would substantially boost sales given the impressive technology the company’s vehicles boast. Since this investment appears to be a turning point for the company, the XPEV stock forecast appears to be bullish in 2023 and beyond which could see the stock continue climbing over the coming months.
Technical Analysis
XPEV Stock is in a neutral trend as it recently entered a sideways channel between $19.93 and $25. Looking at the indicators, the stock is above the 200, 50, and 21 MAs which is a bullish indication. Meanwhile, the RSI is overbought at 82 and the MACD is approaching a bearish crossover.
As for the fundamentals, the recent $700 million investment from Volkswagen is a major catalyst for the stock since it might help the company expand its presence throughout Europe which would lead to drastic revenue growth.
Meanwhile, XPEV has an upcoming catalyst in its Q2 earnings set to be released on August 23 which could send the stock running if the company shows improvement in its bottom line results. With the RSI overbought and with 2 gaps near $20.3 and $15.6, investors could wait for the stock to cool down and consolidate before entering a long position ahead of the company’s Q2 earnings.
XPEV Forecast
With the recent investment it received from Volkswagen, the XPEV stock forecast appears to be bright for the long term given the benefits it is set to receive from this deal. The first significant advantage of this investment is the $700 million the company will receive in exchange for a 4.99% stake in it. Through these funds, the company would be able to further develop its ongoing projects including the development of a new MPV and launching facelifted versions of its P7, G3, and P5 models.
Another advantage is that the deal will boost the company’s sales starting next year as it is set to receive technology service revenue from Volkswagen. In this way, the company may inch closer to profitability due to this new revenue stream. Meanwhile, the most important benefit of this deal is that it might allow the company to expand its presence in Europe and enter lucrative markets like Germany by utilizing Volkswagen’s distribution network. For these reasons, XPEV stock could continue its run until its Q2 earnings in late August given the bullish sentiment surrounding the deal.