XPeng Inc (XPEV), a leading Chinese electric vehicle (EV) manufacturer, is facing bearish signals ahead of the highly anticipated launch of its new model, the Mona M03. The launch event, scheduled for August 27th, coincides with the company’s second-quarter earnings report set for release on August 20th.
While excitement surrounds the launch of the Mona M03, which is priced under RMB 200,000 (US$28,000), XPeng’s stock has faced significant downward pressure. The stock is down over 50% year-to-date and has dropped about 18% in the past month.
Technically, XPeng’s stock is exhibiting strong bearish signals. The share price currently sits below its 20-day and 50-day exponential moving averages (EMA), indicating a downward trend. The MACD indicator, at a negative 0.36, and the RSI at 41.99 suggest that the stock is nearing oversold territory. However, there is slight buying pressure as the price is just above its five-day EMA of $6.97.
The stock is also trading well below the 200-day EMA of $9.62, further highlighting potential for further downside. The Bollinger Bands range between $6.26 and $9.23, with the stock currently trading near the lower band, reinforcing the bearish outlook.
Despite the bearish signals, investors should closely watch the Mona M03 launch for any potential shifts in sentiment. They should also be mindful of how XPeng’s recent organizational overhaul unfolds. The company, like its rivals NIO Inc (NIO) and Li Auto Inc (LI), is focusing on artificial intelligence.
Analysts remain optimistic about XPeng’s long-term prospects. The consensus analyst rating on XPeng stock is currently Neutral, with a price target of $16.21. Recent analyst ratings suggest an average price target of $9, implying a 26.23% upside.
XPeng’s stock was trading at $7.13 at the time of publication.
The company’s performance in the coming months will be crucial for determining the future direction of its stock. The Mona M03 launch, the second-quarter earnings report, and the company’s ongoing strategic shift towards AI will be key factors to watch.
