The Chinese electric car maker, Xpeng Motors (XPENG), saw its shares rise by as much as 9.6% on Monday after the company said it delivered more than 10,000 cars for the second month in a row. The announcement came just days after US President Donald Trump met with XPENG’s CEO and founder, Huang Jiang
during his trade mission to China last week.
Xpeng was able to deliver 10,837 cars during November 2018 which was an increase of 41% from 8,201 cars in October 2018. The company aims to produce 50,000 cars by the end of 2019.
Huang said that deliveries will exceed 20,000 units in December 2018 and 40,500 units for all of 2019. He also added that the company’s sales performance is improving as fourth-quarter shipment volume is expected to be about 20% higher than third-quarter shipping volume.
Xpeng currently has a market capitalization of $11 billion and is one of the most valuable mobility companies in China. It is headquartered in Guangzhou, Guangdong Province and was founded in March 2015.
Huang said that Xpeng plans to enter/expand into European markets next year by opening up showrooms in Germany, France and Switzerland. He also revealed that the company will soon start selling electric cars in Singapore.
Huang said Xpeng is finalising its partnership strategy for entering US markets but things are progressing faster than expected so there could be an announcement soon.
The news of XPENG’s sales figures pushed its share up to $16.20 per share, which has now fallen back to $14.49.
The company is planning to expand its product line by launching an all-electric SUV in 2019. They are also developing a self-driving technology called Xpeng Brain.
It aims to become the world’s largest electric vehicle maker within five years of operation.
Xpeng is China’s first vehicle company to go public with a market capitalization of more than $10 billion.
Its rivals include Byton, WM Motor and NIO.
Byton had also recently announced its production figures where it revealed it produced 10,000 units for October 2018. It has now started shipping cars to Europe which will be followed by the US.
Earlier this month, Byton unveiled its 7-seater multi-function vehicle at CES 2019.
It is yet to reveal its sales figures but it was recently announced that it has raised $500 million in capital from FAW Group and other investors which brings the company’s value up to $3 billion.
Although XPENG’s sales figures may not be as impressive as Byton’s, it is still a very promising company whose valuation is set to increase in the coming years.