What happened
Many electric vehicle (EV) stocks are rebounding today, after an extended stretch of falling prices. The stock of Chinese EV maker XPeng (NYSE: XPEV) went through its own correction with a more than 20% drop for December. But shares are leading the sector rebound today with a gain of about 10% as of 3:05 p.m. ET.
So what
The bounce in XPeng shares today didn't come from a specific company announcement. But the automaker has announced several positive news items recently. Vehicle deliveries in November were a record 15,613. That was a jump of 270% over the year-ago period. And 2021 deliveries have increased 285% year over year.
Image source: Getty Images.
Chinese peer Nio (NYSE: NIO) held its annual Nio Day event last weekend, helping to give investors renewed enthusiasm for China's EV makers. And while Nio is probably more well known, XPeng has outsold Nio in both October and November.
Now what
Xpeng has also introduced new products recently. This fall, it announced a new smart sedan called the P5, and the company launched upgrades to its assisted-driving feature. And last month, it announced the upcoming G9 SUV, which will be the first to support XPilot 4.0, the company's newest advanced driver-assistance system, scheduled to be available in the first half of 2023.
Also in November, XPeng president Brian Gu told CNBC in an interview he envisions the company selling half of its products outside of China in the long term. He said that push will begin next year when the company plans to enter Sweden, Denmark, and the Netherlands.
Investors have to expect growth stocks like XPeng to be volatile. Today's bounce likely just represents a reaction after the recent drop in the stock. But its magnitude is likely based on the underlying strength in the company's sales growth and optimism for its next steps.
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Howard Smith owns Nio Inc. The Motley Fool owns and recommends Nio Inc. The Motley Fool has a disclosure policy.
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