What's Going On With Chinese EV-Maker XPeng Stock?

XPeng Inc. XPEV shares are trading higher Tuesday amid gains in Chinese stocks. Here’s a look at what’s going on.

The Details:

Shares of several Chinese companies, including XPeng, are climbing Tuesday as the Chinese government continues to plan initiatives to prop up the country’s slumping economy.

On Monday night, Bloomberg reported China President Xi Jinping will be briefed on the latest market conditions and policy initiatives by regulators including the China Securities Regulatory Commission as soon as Tuesday.

XPeng’s stock fell more than 42% in January and remains down by nearly 40% year-to-date. The EV-maker delivered 8,250 vehicles in January, a decrease of 58.99% from December deliveries.

Also, XPeng announced at the end of January that it will be upgrading its first plant for about 20 days in order to boost its capacity.

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XPEV Stock Prediction 2024

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at XPeng, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For XPeng, the 200-day moving average sits at $14.05, according to Benzinga Pro, which is above the current price of $8.71. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

XPEV Price Action: According to Benzinga Pro, XPeng shares are up 11.2% at $8.75 at the time of publication.

Image: from Shutterstock