Differences between Investing vs Trading
Differences between Investing vs Trading
Xpeng is a Chinese electric vehicle manufacturer that was launched in 2014. As well as a listing on the Hong Kong Stock Exchange, this automotive company also has a presence in the US. From its offices in Mountain View, California, Xpeng not only oversees the distribution of electric cars in North America and Europe but engages in research. Through its subsidiary, XMotors.ai, it holds a permit in California for testing and developing self-driving cars.
Its operations in the US mean Xpeng shares (XPEV.US) are sold on the New York Stock Exchange. As of 2021, Xpeng’s founders, Xia Heng and He Tao had attracted investment from a number of major companies, including Alibaba. For the fiscal year ending December 2021, Xpeng revenue was $3.2 billion and, although net income was -$763 million, the company had over $10 billion in total assets.
Xpeng co-founders initially sought investment from private companies and individuals. UCWeb and former Alibaba executive and entrepreneur He Xiaopeng were among the first to invest. Following these initial investments, Alibaba, IDG Capital, and Foxconn put money into Xpeng. Subsequent funding rounds followed and, as of 2022, Xiaopeng owned 23% of the company’s stock, while the Alibaba Group owned 12% of Xpeng shares.
The XPeng share (XPEV.US) price became of interest to public investors in August 2020. Launching on the New York Stock Exchange helped the company raise $1.7 billion following an initial XPeng share (XPEV.US) price of $22. By December 2020, the Xpeng share price history shows its US stock raised another $2.5 billion and, by June 2021, it had increased 166%.
NIO Inc. is one of Xpeng's main competitors. NIO designs, manufactures, and sells electric vehicles in China, the United States, the United Kingdom, and Germany. NIO Inc. has a market capitalization of $25.31 billion, while Xpeng's is $24.73 billion. Both companies are competing in the same market, and both have similar products.
Despite Tesla and Nio being the leading electric vehicle manufacturers in the world, Xpeng is now worth more than both combined. Xpeng's main selling point has been its low prices, which has allowed it to gain a significant market share in China.
You can buy shares in Xpeng and own a piece of the company. This is known as investing, and it gives you a direct stake in its fortunes. So, if the value of the company and its shares increases above the share price you paid, you’ll make a profit. If the XPeng share (XPEV.US) price drops below the value you paid, you’ll lose money.
Trading Xpeng shares is the act of speculating on its price movements. This means you don’t have to purchase the underlying asset (i.e. stock), which allows you to take long or short positions. Long positions are when you speculate on the value of Xpeng shares increasing. Short positions are when you speculate on the value of Xpeng shares decreasing.
Therefore, trading Xpeng stock allows you to take either position. Given that the XPeng share (XPEV.US) price history shows ups and downs, having the flexibility of trading, rather than investing, could be useful.
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* The spreads provided are a reflection of the time-weighted average. Though Skilling attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.
The above spreads are applicable under normal trading conditions. Skilling has the right to amend the above spreads according to market conditions as per the 'Terms and Conditions'.
Which are the competitors of Xpeng shares?
As a leading Chinese electric vehicle manufacturer, Xpeng competes with a number of domestic and international companies in the EV space. In China, its main competitors include BYD, NIO and GAC Group. Tesla is also a major competitor, although it does not currently have a direct presence in the Chinese market.
Looking to the future, the competition in the EV market is only going to intensify as more and more companies enter the space. It will be interesting to see how Xpeng fares against its competitors in the years to come.
Who owns most Xpeng shares?
The largest individual shareholder of Xpeng is He Xiaopeng, the company's founder, chairman, and CEO. He owns 35.6% of shares outstanding. The second-largest shareholder is Morningside Venture Capital, a venture capital firm based in China. Morningside owns 9.1% of Xpeng shares. Cai Wensheng, the founder of Meituan Dianping and a well-known angel investor in China, is the third-largest shareholder. He owns 8.6% of Xpeng shares.
The fourth-largest shareholder is IDG Capital, a global venture capital firm with offices in Beijing, Shanghai, and San Francisco. IDG Capital owns 7.2% of Xpeng shares. The fifth-largest shareholder is Alibaba Group, the Chinese e-commerce giant. Alibaba owns 5.4% of Xpeng shares.
Do Xpeng shares pay dividends?
This is a question that many investors ask, given the volatile nature of the stock. Xpeng does not currently pay dividends, but that could change in the future. For now, shareholders will have to be content with the potential for capital gains as the company grows.
Xpeng is a Chinese electric vehicle manufacturer that is listed on the New York Stock Exchange. The company makes vehicles for both the mass market and the luxury market. Xpeng went public in 2018, and its share price has been volatile since then.
How Xpeng looks to replicate efficiencies in Tesla’s manufacturing process?
The automaker will use front and rear integrated aluminium die casting technologies, similar to Tesla’s ‘gigapresses’, while also integrating the battery packs directly into the vehicle body. Xpeng will build the new G6 SUV model on the SEPA 2.0 system.
These cost-efficiencies are seen as essential for Xpeng to remain competitive as competition heats up in the global EV market.
What about the Electric Vehicle Price War trader should know?
Tesla is just one of the many EV companies aggressively cutting prices this year to protect market share. While analysts originally saw this as a move to fend off competition from established Western firms such as GM & Ford, the impact is felt far more broadly across the industry.
In fact, price cuts will be essential if mass adoption goals are to be achieved. Tesla’s Musk has repeatedly said that high prices are the biggest barrier to overcome for full EV adoption.
In Q1 2023, Tesla delivered a record 422,875 vehicles. Yet the company is still cutting prices to stoke demand and protect market share. Over the same period, Xpeng delivered 18,230 vehicles. The gulf is enormous.
Can Xpeng become an important EV automaker?
It’s going to be a challenge. Xpeng Chief Executive He Xiaopeng says “that an automaker needs to achieve annual sales of 3 million units globally to get a chance to survive beyond a decade”.
Tesla would seem to be bucking that trend for now. But Tesla also had the advantage of being first in a new market. Allowing the firm time to grow essentially without competitors.
Will Xpeng survive the price war?
Not if they keep missing targets. Xpeng originally aimed to break even/become profitable by late 2023 or early 2024. In January, CEO He Xiaopeng pushed that target back to 2025.
The firm aimed to deliver 250,000 vehicles in 2022, but fell way short of that number, delivering just over 120,000 electric vehicles in the year.
Why Trade [[data.name]]
Make the most of price fluctuations - no matter what direction the price swings and without capital restrictions that come with buying the underlying asset.