Xpeng just announced a deal with DiDi Global – a reason to buy stock?

August 29, 2023 03:18 AM AEST | By Invezz

Xpeng just announced a deal with DiDi Global – a reason to buy stock? — Image source: Invezz

Xpeng will also introduce a new EV brand

The ride-hailing giant will get a 3.25% stake in the Chinese EV startup in return, as per the press release.

On Monday, Xpeng also revealed plans of announcing a new electric vehicles brand next year as part of its strategic alliance with DiDi Global. The project dubbed “MONA” will launch a smart EV (A-class) priced at about $21,000 in 2024. According to CEO He Xiaopeng:

Partnership with DiDi will ensure better-than-expected initial scale for the car and achieve a combination of goals in innovation and supply chain management.

Xpeng shares are up nearly 80% year-to-date at writing.

Is it worth buying Xpeng stock today?

Partnering with DiDi Global may be a reason to invest in Xpeng considering a Bank of America analyst recently raised his price objective on the EV stock to $22 – a more than 20% upside from here.

Last month, Volkswagen disclosed a $700 million stake in Xpeng and said it will work with the Chinese startup on two new electric vehicles. According to Ming Hsun Lee, that partnership delivers the following three benefits:

Concerns over fast cash burn will be lower, its ADA capability is endorsed, and Xpeng could manage cost better through larger scale procurement and stronger supply chain shared with VW.

Earlier in August, Xpeng reported a 25.5% sequential growth in its revenue for the second quarter.

The post Xpeng just announced a deal with DiDi Global – a reason to buy stock? appeared first on Invezz.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.