No Hype Xpeng Update 2. Money, factories and progress

Hi folks, This is a quick no hype update and Xpeng. They are making moves
on the manufacturing front that no one else is doing at this point.

Chinese electric-vehicle maker Xpeng Inc. has signed an agreement with banks for a 12.8 billion yuan ($2 billion) line of credit.

Agricultural Bank of China Ltd., Bank of China Ltd., China Construction Bank Corp., China Citic Bank Corp. and Guangzhou Rural Commercial Bank Co. will provide the facilities to support Xpeng’s business and help expand its manufacturing, sales and service capabilities, the company said in a statement Tuesday.

Between the recent secondary offering the cash they already had on hand and this credit facility they are in good shape financially and XPEV probably has a war chest that is somewhere in the $7 billion dollar range.

Xpeng has plans to sink this new infusion of cash into a third self owned factory. They already have a partnership manufacturing agreement with Haima Automobile, and one self owned factory in operation. They are currently constructing a third factory and now plan to add a third self-owned factory to their overall manufacturing capability.

Nio, XPEV Li Auto, Geely, Tesla

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[FightingWordsFinancial]

Join WEBULL, deposit $100, and receive FREE STOCKS worth up to $3700 using this link:


Best Books For Beginning Investors:

A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing

The Book on Rental Property Investing: How to Create Wealth With Intelligent Buy and Hold Real Estate Investing

Books For More Advanced Investors:

The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns

Security Analysis: Sixth Edition, Foreword by Warren Buffett

The Book That Birthed Cathy Wood's Ark Invest:
The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail (Management of Innovation and Change)

[twoo]

XPeng is based in Guangzhou, which is located in southern China which is a major economic center in China and an auto manufacturing hub. Just like you said, it is also backed by the regional government just as NIO, which is located in the North. Regional power dynamics and the huge Chinese market would allow more than one EV manufacturers to co-exist and do well. Xpeng cars are known for their safety and are priced lower than NIO. I am surprised that Xpeng has not gained more popularity among US investors compared to NIO. Just as with NIO, investing in Xpeng presents for the US investors additional geopolitical risks. However Tesla is not immune from geopolitical risks. The Trump admin's favor trade war tool is to blacklist Chinese companies for alleged ties to the Chinese state or military, but there are signs that the Chinese are fighting back using the same tools. What if one day the Chinese government decided that Tesla due to Musk's Space X has too much tie to the US military? The geopolitical risks placed on the Chinese companies by our administration could backfire on companies like Tesla which gets its sizable sales in China.

[dougb]

Great discussion but I didn't follow the part near the end, before and after was all about how regional authorities help and become enmeshed in product support, such as with XPEV's factory, but about 8 minutes in (approximately) comments are if we thing the government backs them we're mistaken.

[lakatosstefan]

Best channel for real, no 10x or 100x hype, no clickbaits, ur channel is the best, cheers from Spain

[kathyhuynh]

Thanks Jason. Always enjoy your analysis, knowledge and charms. 🌻

[Fnela]

The best out there this what i really call true analysis

[langforc]

Interesting that everyone thinks the P7 is competition to the Model 3. My take on it is that the P7 is a direct hit at the Model S, but half the price (check dimensions to compare). If they can do the same trick with the new smaller sedan and make it 1/2 the price of the Model 3 then Xpeng will just have to deal with supply constraints as demand will sky rocket.

[massimilianokisvarday]

Good thoughts, convinced XP will go well in the next years. They have lots of tech around autonomous driving

[leebeewahh]

great content analysis on Xpeng. I also realized there are many more institution & hedgefund in NIO than Xpeng..this explains the coverage on Xpeng is far under rated.

[alirezashirazifard]

Great video as usual . Keep up the good work.

[LakesouthTiger-twes]

I really like your explanation. Well said.

[dimoes]

Thanks for the analysis

Two questions:
1. Do we know what percent Xiaomi owns of Xpeng and if they use any of their technology in car?
2. What will happen to all the existing integrated ice manufacturers in China? If China doesn't have any interest in them failing wouldn't they be forced to produce bevs? If not, is restructuring/merging into other companies also an option? How does China get around the capitalist process of letting bad/deprecated companies fail?

[stephen]

Super analyst. No shrieking and over excited nonsense, calm well thought out appraisals. How about a look at Niu the electric motorcycle firm. Keep up the good work! From a rainy UK

[yeswecan]

Thanks for an excellent update. Can you review for your viewers the whole TESLA lawsuit and how that might impact them financially?

[mrnegative]

the chicken man said there was a rumour about xpeng's sales numbers being a bit sketchy so i de-risked and sold out, still have some Li and NIO. Also think the Tesla price drop will impact Xpeng more than the others.

[ImtiazMirza]

You are wrong for no good reason! kidding.
I think Nio, Xpeng and Li all gonna be successful.
The world market needs to be dominated by EVs. They will take the charge with Tesla and others no question about that.
It's gonna be interesting how the traditional automakers come up with to survive against the EV revolution.

[grateful]

Xpeng has been dishonest with Tesla. Being sued for theft.
Sad. 😩

[alphaomega]

Tesla is finished, rest in peace Tesla. Xpeng P7 Tesla Killer

[dianerich]

GM has an electric vehicle they sell to China. Very curious. US needs cheaper cars than NIO and Tesla. No one talks about US ev companies.

[Pleasers]

Can you make a vid about the xpeng fake numbers news? How legit is that?