XPeng Inc. (XPEV): A Bull Case Theory

We came across a bullish thesis on XPeng Inc. (XPEV) on Substack by Investing Intel. In this article, we will summarize the bulls’ thesis on XPEV. XPeng Inc. (XPEV)’s share was trading at $23.73 as of March 14th.

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An aerial view of an urban skyline with a fleet of eVTOLs flying in formation.

Xpeng (XPEV) is poised to become the world’s first mass producer of flying cars by 2026, with its groundbreaking “land aircraft carrier” concept—a modular vehicle combining a six-wheeled van and a detachable passenger drone. This innovation allows passengers to drive to a take-off location, detach the drone, and complete their journey airborne, reducing travel time and expanding accessibility. Xpeng showcased its flying car at the 2024 Zhuhai Airshow, securing around 3,000 intended orders. With a new factory set to produce 10,000 units annually by early 2026, the company is positioning itself at the forefront of this transformative industry.

Priced under two million yuan, the flying car initially targets tourism and short-haul rescue missions, aligning with China’s strategic push into the rapidly growing “low-altitude economy,” valued at approximately one trillion yuan by 2025 and expected to triple by 2030. The Chinese government’s active support, including infrastructure development and regulatory advancements, further accelerates this sector’s growth. By leading in this cutting-edge transport technology, Xpeng not only strengthens its global innovation footprint but also positions China as a dominant force in the future of aerial mobility, setting the stage for a revolutionary shift in urban and regional transportation.

XPeng Inc. (XPEV) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held XPEV at the end of the third quarter which was 20 in the previous quarter. While we acknowledge the risk and potential of XPEV as an 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 more promising than 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 was originally published at Insider Monkey.