Xpeng Stock Price Rises 10% as EV Manufacturer Foreshadows New SUV Launch

Xpeng Motors (NYSE: XPEV) shares spiked by 10% after the Chinese electric vehicle manufacturer announced the launch of its new SUV next week. The sports utility vehicle, which is likely succeeding Xpeng’s current G3 and G3i SUV models, will launch at the Guangzhou auto show on November 19.

At the moment, Xpeng sells two sedans, namely the P5 and its top-of-the-range P7 models. These, combined with the incoming new SUV model, will add to China’s already budding electric vehicle market. In addition, Xpeng faces direct competition from Li Auto (NASDAQ: LI) and Nio, two rival EV startups that also have SUVs in their product lineups. Furthermore, the 7-year-old Chinese EV company will battle for a part of the market share with leading American EV brand Tesla’s Model X.

Xpeng Comfortable on the Delivery Front for Its Car and SUV Models

Last month, Xpeng delivered more than 10,000 cars for the second consecutive month, which also pumped its share price rise. Of the 10,138 units for the month of October, 3,657 comprised its G3 and G3i SUV models. This was a monthly record for the G3 range of vehicles since its launch in December 2018. In addition, the figure also represents an increase of 233% from last year, and a total cumulative delivery in excess of 100,000 – as at the end of October.

Xpeng’s car production for that period seems unaffected by the global chip shortage that ravaged the tech industry. According to XPeng Vice Chairman, Gu Hongdi Brian, the car company already had a target for the year with the required chips accounted for.

Xpeng and Flying Cars

Back in September, Xpeng revealed that it was considering building flying cars and integrating robotics into the auto industry. The electric vehicle manufacturer sees this as the next logical step in the sector, even as EVs are seeing increasing mainstream adoption.

Much earlier in July, Xpeng conducted a practical test of their second flying passenger car. Furthermore, the company stated that the requisite technology is now available, developed over an eight-year period. Xpeng said it planned to organize a press conference in the future about the flying car. This comes even as other car brands, such as Hyundai and Geely are also exploring aerial vehicles.

In addition to exploring flying cars, Xpeng stated that the integration of robotics would rapidly revolutionize the auto industry. Other car companies also seem to be in agreement with this assertion and are exploring their own versions. For instance, in August, Tesla CEO Elon Musk announced that his company would be developing a humanoid robot.

Xpeng also looks to champion autonomous driving among electric vehicles and make it more mainstream. To achieve this in part, the automaker uses a combination of lidar, radar, and a camera to assist the driver. Xpeng says as prices for the core components decrease, customers will have increased access to the technology.