How to Buy XPeng Motors (XPEV) Stock

Invest in XPEV stock today with Interactive Brokers as your trusted online brokerage.

As one of the dynamic new entrants in the electric vehicle industry, XPeng Motors has captured the attention of investors worldwide. With its innovative technology, impressive growth potential and increasing market share, many see this Chinese automaker as a golden opportunity.

Are you interested in adding shares of XPEV to your portfolio? Our beginner’s guide will introduce you to the process you’ll go through when you learn how to buy stocks, how to get started with your first brokerage account and how to buy your first shares of XPEV stock. 

How to Buy XPeng Motors (XPEV) Stock

If you’ve ever bought or sold shares of stock before, you can likely already use your existing brokerage account to buy XPeng’s stock because it currently trades on the New York Stock Exchange (NYSE). Open your brokerage account, search for XPeng’s ticker (XPEV) on your trading platform and use your broker’s individual process to buy and sell shares as you please.

Never invested in the stock market before? Our guide will help you open your brokerage account and start your investment portfolio and buy into Wall Street.

Step 1: Pick a Brokerage

The first step to invest in the stock market is to open an account with a broker. A stockbroker is a financial service company authorized to buy and sell shares of stock on behalf of retail investors, sometimes in exchange for a small per-trade fee or commission. The broker that you choose will provide you with a trading platform you can use to initiate buy and sell orders from the comfort of your home. Many brokers also provide access to mobile trading, educational resources and research tools.

Step 2: Decide How Many Shares You Want to Buy

Next, you’ll need to decide how many shares of stock you want to buy. Take a look at the current price of XPEV and how the share price is changing. You may want to track the price of XPEV over time to be sure that you’re buying in at the most advantageous time.

When you think that it’s time to buy, set a budget for the total amount of money that you want to invest. Then, use the market price to determine how many shares you can buy. Don’t worry if your investment doesn’t come out to a perfectly even number of shares — most brokers will allow you to invest in “fractional shares” worth as little as a dollar. 

Step 3: Choose Your Order Type

After your brokerage account is fully funded and you’ve decided how many shares of stock you want to add to your portfolio, you can select your order type. The type of order that you choose will influence when your order is filled and the amount that you pay for each share of stock. The best brokers offer multiple types of orders — some of the most common types of orders your broker might provide you with access to may include:

Market order: A market order is a buy order executed at the current market share. For example, if you place an order to buy 10 shares of XPEV and the current market price is $40 per share, you’ll pay around $40 per share that you buy. Though market orders are filled quickly, they give you little control over the price that you pay per share.

Limit orders: A limit order is a buy order executed at or below a specific price. Unlike placing a market order, you’ll specify both the number of shares that you want to buy as well as a maximum price that you’re willing to pay per share when you place a limit order. 

Say you place a limit order to buy 10 shares of XPEV at a limit price of $40 per share. Your broker will only fill the order if it’s possible to buy each share at a price of $40 or less. Although limit orders allow you to control costs when investing, these types of orders are less likely to be filled than market orders.

Trailing stop order: Trailing stop orders are executed as a market order when a stock’s price rises a certain percentage or dollar amount above its lowest market price. For example, if the current stock price of XPEV is $40 and you set a trailing stop order with a trailing percentage of 10%, your broker would execute the order as a market order if the price of XPEV rises to the stop price of $44 or 10% above its current price.

Depending on the broker you work with, you might have access to additional types of buy orders. 

Step 4: Execute Your Trade 

After you’ve filled in your order details, submit your order to your broker through your trading platform and relax. Your broker will execute the order on your behalf according to your price and timing instructions.  

Best Online Brokers for Stocks

If you don’t know where to begin your search for a broker, consider starting off with a few of our favorite options below. You can access the passenger vehicle market, review the market caps of every EV maker where you may want exposure and perhaps invest in other types of driving technology.

XPEV Stock History

XPeng was founded in 2014 by 2 former senior executives from GAC Group, a Chinese automobile manufacturer. From the outset of the company, XPeng has seen multiple successful funding efforts from backers like Alibaba, Foxconn and IDG Capital. The company’s first model, the G3, debuted in December 2018. XPeng Motors’ subsidiary in the U.S. received the Autonomous Vehicles Testing Permit from the California Department of Motor Vehicles in March 2020.

XPeng stock chart as of 8/29/24. Source: TradingView

On August 27, 2020, XPeng made its entrance on the NYSE with its IPO. The company raised $1.5 billion on its opening day and shares of XPEV’s stock climbed more than 40% on its first day of trading. Although shares of the company’s stock have since fallen from its all-time high, renewed interest in electric vehicles may push XPeng’s stock higher in the future. 

The EV market is constantly changing, and while XPeng is aiding in the electrification of world roadways, remember that the growth rate of this asset will shift every new and then. As of Aug 2024, the stock’s market cap at over $7.47B.

Pros of Buying XPEV Stock

Investing in XPEV stock offers several compelling advantages that can appeal to both seasoned investors and newcomers alike.

• Growth potential: XPeng is a leading player in the rapidly expanding Chinese electric vehicle market. The company has shown strong sales growth and continues to innovate in autonomous driving technology.
• Government support: China's government strongly supports the EV industry through subsidies and incentives. This backing could provide XPeng with advantages in its home market and help fuel its expansion.
• International expansion: XPeng has begun selling vehicles in Europe, opening up new growth opportunities. Successful expansion into international markets could significantly boost the company's revenue and global market share.

Cons of Buying XPEV Stock

While investing in XPEV stock may seem appealing due to its potential for growth in the electric vehicle market, there are several notable cons that investors should carefully consider before making a decision.

• Intense competition: The EV market in China is highly competitive, with numerous domestic and international players vying for market share. XPeng faces stiff competition from established automakers and other EV startups, which could pressure its margins and market position.
• Regulatory risks: Changes in government policies or regulations could impact XPeng's business model or growth prospects. The company is also subject to geopolitical tensions between China and other countries, which could affect its international expansion plans.
• Financial performance: Despite growing revenues, XPeng is not yet consistently profitable and continues to invest heavily in research and development. The company may need to raise additional capital in the future, potentially diluting existing shareholders.

Investing in EV Stocks With Wisdom

As interest in the electric vehicle market continues to surge through 2024, more and more investors are adding EV stocks to their portfolios. If you’re interested in investing in renewable energy, it’s a good idea to diversify your portfolio by adding a few unique EV stocks and ETFs to your list of investments. Diversifying your investments will allow you to better protect yourself against capital loss. 

Frequently Asked Questions