Xpeng sees strong sales growth from driver-assist technology

Xpeng, a Chinese electric vehicle (EV) maker, is seeing success from its investment in driver-assist technology. The company has delivered over 30,000 cars each month since November. Xpeng expects to double its sales compared to 2024 and anticipates profitability in the last quarter of this year. Two of the popular models are the lower-priced Mona M03 and the Xpeng-branded P7+, which comes with advanced driver-assist software included in the price. Bank of America analysts believe Xpeng's strong lineup of upcoming models will help its growth in the next couple of years. Xpeng's stock price target has been raised to $27 by Bank of America, indicating an expected increase of over 20%. The shares have seen some fluctuation but have doubled in price earlier this year. Analysts say Xpeng improved its sales due to its new lower-priced models. However, the highly competitive Chinese EV market poses challenges. Analysts from Barclays raised their price target for Xpeng to $20 but maintain a cautious outlook. Moreover, other major companies like BYD are also advancing in driver-assist technology, further intensifying the competition. They recently announced new ultra-fast charging technology and launched their own driver-assist systems. Experts suggest that the Chinese market is reaching a turning point for autonomous driving features. Most automakers may need to offer basic driver-assist capabilities for free to stay competitive. Xpeng's focus on driver-assist technology has taken time to yield results, but recent launches have boosted its popularity. The introduction of a higher-end version of the Mona M03 is expected soon.