Skip to main content

⭐️ New Position XPEV (Xpeng) Calling Xpeng the Tesla of China wouldn't be too far off. XPEV is not as far along as TSLA but the mission and focus on vertical integration is the same.

The company is Chinese and headquartered in Guangzhou China but also has offices in Mountain View, California. In September of this year they brought their 4th car to market, the G9, and have done about $2bil in sales through three quarters. Vehicle deliveries are strong and gaining...

Screen Shot 2021-12-07 at 10.39.00 AM

This fourth car is the first of Xpeng's to include a Tesla-like Autopilot system. "G9 is the first Xpeng vehicle to be compatible with the company's advanced Xpilot 4.0 driver-assist system."

XPEV is almost certainly subject to the China discount wherein the stock trades at a discount to its peers due to political risk from the Chinese government. Given the velocity of revenue growth...

Screen Shot 2021-12-07 at 10.35.25 AM

...if this was an American company--in today's environment--I would expect it to trade at least 13-15x sales. It currently trades at less than 10x.

Only about 12% (and falling) of the stock is held by institutions. Here's the institutional ownership rate compared to JD...

Screen Shot 2021-12-07 at 10.35.37 AM

ARK added XPEV to ARKQ as the 37th weight ranked holding. They own .03% of the company.