Is XPeng Inc (XPEV) Among EV Winners Of Trump’s Softened Stance On China Tariffs?

We recently published a list of 5 EV Winners Of Trump’s Softened Stance On China Tariffs. In this article, we are going to take a look at where XPeng Inc (NYSE:XPEV) stands against other EV winners Of Trump’s softened stance on China tariffs.

Donald Trump had a busy first day in office, revoking former President Biden’s executive orders and announcing new measures that continue to send shockwaves through multiple industries. One thing missing from his remarks was tariffs on China, something that was a big part of his election campaign.

Has Trump’s stance on China tariffs softened now? Is this a strategic move to tone down his aggressive stance on China in order to continue business relationships with the Asian country? We believe the President is intentionally taking a softer stance and this sentiment is echoed by Chinese stocks as well. We looked at some Chinese EV stocks that enjoyed a good day of trading in the absence of tariffs on China on Tuesday.

To come up with the list of 5 EV winners of Trump’s softened stance on China tariffs, we only considered stocks with less than a $25 billion market cap.

A close-up of a luxury electric sports sedan, its sleek body reflecting the energy of progress.

XPeng Inc. (NYSE:XPEV)

XPEV stock is on a roll with a 60% performance in the last year. Earlier this month, the company reported a 52% YoY surge in vehicle deliveries which was quite impressive. The management believes this trend should continue, especially with the recent launch of its M03 and P7+ models.

Even though the company has had negative margins up until recently, it is still well supported by a cash buffer of $5.09 billion. This enables the company to aggressively pursue its ambitions without worrying about funds. This financial strength is one reason for the company’s optimistic plan to expand to 60 markets globally in 2025 from the current 30. As long as Trump doesn’t spoil the plans, the company should be able to pull this off.

Overall, XPEV ranks 2nd on our list of EV winners Of Trump’s softened stance on China tariffs. While we acknowledge the potential of XPEV as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as XPEV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.