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Xpeng Stock Flashes Buy Signal As New SUV Ups Stakes For GM’s China EV Push


Xpeng stock rose after the Chinese EV startup teased a new electric vehicle, which will take on General Motors‘ (GM) critical all-new, all-electric SUV for the Chinese market.




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On Tuesday, China’s Xpeng Motors (XPEV) announced that it will unveil a “new smart EV” at a Guangzhou auto show Nov. 19.

That is likely to be an electric SUV, possibly called the G7. The new SUV is likely to succeed Xpeng Motors’ existing G3 and G3i electric SUVs, some reports suggest.

Earlier this week, a General Motors (GM) joint venture in China announced it will launch, and start taking reservations for, the Cadillac Lyriq electric SUV on Nov. 17. That EV is a spearhead of GM’s new electric strategy for one of the world’s largest EV markets. It’s due to go on sale in China in 2022. The Lyriq will also go on sale in the U.S. next spring.

Rival Chinese start-ups Li Auto (LI) and Nio (NIO) also offer electric SUVs in China’s rising and highly competitive market for electric sport utility vehicles. So do Tesla (TSLA), Volkswagen (VWAGY) and China car giant BYD (BYDDF). Ford (F) will begin deliveries of its made-in-China Mustang Mach-E crossover by year-end.

Alibaba (BABA)-backed Xpeng’s fast-growing EV lineup also includes two electric sedans. In October, Xpeng Motors more than tripled EV sales, continuing a red-hot sales streak.


Stock Market Rally Resilient; 5 Leaders In Focus


Xpeng Stock, EV Stocks

Shares rose 2% to 48.55 on the stock market today. Xpeng stock rose as high as 50.40, a nine-month high. XPEV stock is still just above a 48.08 buy point in a choppy cup base, according to MarketSmith chart analysis. Investors might choose to wait for a little more strength given Xpeng’s intraday retreat.

Among other EV stocks Nio stock gained 1% and Li Auto fell 0.8% after both came close to aggressive entries soon after the open.

Tesla stock sank 2.8%, continuing a weekly retreat as CEO Elon Musk sells some of his huge TSLA stock holdings.

Volkswagen dipped 0.5% and BYD fell 2.3%.

Find Aparna Narayanan on Twitter at @IBD_Aparna.

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