XPeng Trading Guide: How to Trade XPeng Stocks CFDs

When deciding to engage in share CFD trading, it is important to understand the background and market mechanisms of your chosen contract’s underlying share. In this article, you’ll gain a better understanding of XPeng, its market position, ways to capture its price movements, and more. Let’s go:

TL;DR

• XPeng Inc. is a prominent Chinese electric vehicle manufacturer headquartered in Guangzhou. It is traded on the NYSE and HKEX.
• Founded in 2014 by Henry Xia and He Tao, former GAC Group executives, XPeng specialises in designing, developing, and manufacturing intelligent electric vehicles like the G3 SUV and P7 sports sedan.
• XPeng has attracted investments from notable entities such as Alibaba, Xiaomi, and Foxconn. It has rapidly expanded its product lineup and entered ride-hailing and autonomous driving technology markets.
• Traded under the ticker symbol “XPEV,” XPeng shares' price movements can be captured by trading CFDs.

What Is XPeng Inc.?

XPeng Inc. (XPEV), officially known as Guangzhou Xiaopeng Motors Technology Co., Ltd., is a prominent Chinese electric vehicle (EV) manufacturer. It is headquartered in Guangzhou, southern China, and has offices in California's Bay Area and Munich, Germany. Its stock is publicly traded on the New York Stock Exchange and the Hong Kong Stock Exchange.

The firm specialises in designing, developing, manufacturing, and marketing intelligent electric vehicles. Its product lineup includes environmentally friendly models such as the G3 SUV and the P7 sports sedan. The company focuses on advanced driver-assistance systems, in-car intelligent operating systems, and core vehicle systems, including powertrains and electrical/electronic architectures. XPeng customers also have access to supplementary services like maintenance and ride-ordering.

XPeng History

Founded in 2014 by the pair Henry Xia and He Tao, former GAC Group executives, the company has risen quickly through the ranks of global EV firms. Early investors in XPeng included notable figures and entities such as He Xiaopeng, founder of UCWeb and current XPeng Chairman, Xiaomi (1810.HK) founder Lei Jun, Alibaba (BABA), Foxconn, and IDG Capital. In 2018, Alibaba's vice president Joseph Tsai joined XPeng's board following another successful funding round.

XPeng's U.S. subsidiary, XMotors.ai, initially held a permit for testing self-driving cars in California. The permit was revoked in February 2020 due to a reporting issue but reinstated in March 2020. XPeng launched its first vehicle, the G3 SUV, in December 2018 and its second model, the P7 sedan, in April 2019, with deliveries starting in June 2020.

In 2019, XPeng entered the ride-hailing market in Guangzhou with its own fleet of vehicles. That same year, it raised $400 million in a funding round with Xiaomi joining as a strategic investor. The company continued to attract substantial investments, raising $500 million in July 2020 and another $400 million in August 2020 from various investors, including Alibaba and the Qatar Investment Authority. XPeng's IPO on the New York Stock Exchange in August 2020 raised $1.5 billion.

XPeng's growth accelerated in 2021, with revenue surging over 500% year-over-year. The company began exporting the P7 sedan to Norway and launched the P5 sedan, the first production car with lidar sensors for advanced driver-assistance systems.

In 2023, XPeng unveiled a new vehicle model at the Shanghai Auto Show and announced a partnership with ACCESS Europe for in-car infotainment systems. Volkswagen Group (VOW.DE) invested $700 million in XPeng in July 2023, acquiring a 4.99% stake and collaborating on developing VW brand electric models for China.

In August 2023, XPeng agreed to acquire DiDi's autonomous driving technology unit for $744 million in shares. The company further strengthened its partnership with Volkswagen in 2024, signing agreements to co-develop vehicle platforms and electronic architectures, with mass production planned for 2026. Whether the firm can continue its trajectory of expansion and innovation remains to be seen.

What Are XPeng Shares?

XPeng shares represent units of ownership in XPeng Inc. The company issues stocks for individuals and investors to own company shares. Due to XPeng's prominent role in electric vehicle manufacturing, its stock has become widely traded internationally.

Although XPeng is based in China, it can be traded on US stock exchanges as American Depositary Shares (ADSs) instead of common stock. ADSs are a type of equity share specifically designed for companies outside the US. Through this financial derivative, traders and investors in the US can trade shares of non-US companies on US exchanges.

What Is XPeng Shares CFD Trading?

‘XPEV’ is the ticker symbol used to represent XPeng Inc. on the New York Stock Exchange. Like other popular shares and financial instruments, the share price of XPeng Inc. provides opportunities for traders to speculate on its fluctuating prices.

XPeng shares CFD trading involves trading with the intention of profiting from its rising and falling prices. If you expect the price of XPeng shares to trend higher, you can open a CFD long position to profit from its bullish price movement potentially. Conversely, if you anticipate the price of XPeng shares to decline, you can open a CFD short position to benefit from its bearish price movement. However, it is important to note the distinction between traditional share trading and shares CFDs; the latter does not involve ownership in the company or its attendant rights and responsibilities.

Factors Affecting XPEV’s Share Price

Below, you’ll find some of the most important factors that may affect whether the value of XPeng’s share price rises or falls, a key consideration when trading XPeng share CFDs:

• Financial Performance: The company's quarterly and annual financial results, including revenue, earnings per share (EPS), and profit margins, significantly impact its stock price. Positive financial outcomes typically lead to an increase, while negative results can cause a decrease. Monitoring XPeng's quarterly earnings results and annual report releases is crucial.
• Investor Sentiment: Market perception of XPeng's growth prospects, competition, and overall industry trends drives stock price movements. Positive news, such as product launches or expansion plans, can boost sentiment and stock prices. Staying updated with corporate announcements and news stories is important.
• Industry Developments: Technological advancements, regulatory changes, and competition within the electric vehicle industry can impact EV stocks’ value, including that of XPeng.
• Government Policies: Incentives, subsidies, and regulations related to electric vehicles and clean energy significantly affect XPeng's business and stock price. Policy changes can alter the demand for XPeng's products.
• Macroeconomic Conditions: Broader economic factors, including interest rates and inflation, influence XPeng's stock price. Economic downturns or uncertainty can negatively affect stock prices, while economic growth can have a positive impact.
• Global Events: Trade tensions, geopolitical conflicts, and health crises (such as COVID-19) can affect investor confidence and market stability, impacting XPeng's stock price.
• Innovation: XPeng's ability to innovate and introduce new technologies, especially in autonomous driving and battery technology, influences its stock price.
• Growth Expectations: Investor expectations of future growth and performance, influenced by analyst reports and financial institution upgrades or downgrades, can impact stock prices.
• Market Volatility: General market fluctuations and changes in stock indices can affect XPeng's stock price, as investors may shift assets in response to market conditions.

How to Trade XPeng Shares CFDs

Trading contracts for differences (CFDs) on XPeng's share price allows traders and investors to participate in the price movements of XPeng's shares without owning the underlying stock. In the context of XPeng Inc., XPeng shares CFDs represent derivative instruments based on the company's share price. They offer opportunities for traders to potentially profit from the price difference between the opening and closing of their trades.

Long and Short Positions: Traders can take either long or short positions on XPeng shares CFDs. A long position on XPeng shares CFD means speculating that the price of XPeng's shares will rise, aiming to profit from this increase. Conversely, a short position on XPeng shares CFD involves speculating that the price of XPeng's shares will fall, enabling traders to profit from the decline potentially. A trader will incur losses if the price moves in the opposite direction of the position.

Trading XPeng Share CFDs vs. Investing in XPeng Stocks

Trading and investing in XPeng Inc. shares are two common approaches for gaining exposure to the company's price movements. However, these methods differ significantly in strategy, ownership, and risk, and these distinctions must be clearly understood before entering either arena.

When trading XPeng shares CFDs, traders do not own the actual shares. Instead, they speculate on the price movements of XPeng shares over the short term. This approach involves using financial derivatives, allowing traders to profit from rising and falling prices. One of the key features of CFD trading is leverage, which means traders can open more prominent positions with a smaller amount of capital. While leverage can magnify profits, it also increases the potential for losses, and traders can lose more than their initial margin.

In contrast, investing in XPeng shares involves buying and holding the actual stock, aiming for long-term appreciation and potential dividend returns. Investors become partial company owners and typically hold their shares for an extended period, benefiting from the company’s growth and profitability. Unlike CFD trading, investing does not usually involve leverage, so investors are limited to their initial investment amount, reducing the risk of losing more than they invested.

XPEV Shares Trading Hours

Traditional shares of XPeng stock are traded on the New York Stock Exchange and the Hong Kong Stock Exchange. The trading period for XPEV shares on the NYSE is between 9:30 AM and 4:00 PM Eastern Time (GMT -4). In Hong Kong, XPeng can be traded daily from 13:30 to 20:00 UTC.

When engaging in share CFD trading rather than that on the traditional stock exchange, trading on XPeng share CFDs on Plus500's trading platform is available from Sunday at 10:00 PM CET to Friday at 10:00 PM CET.*

*Please note that trading platform hours are subject to the individual operator.

How to Analyse XPeng Shares CFDs

Analysing XPeng share price movements can encompass technical, fundamental, and sentiment aspects. These analytical methods provide valuable insights into potential price trends and market behaviours.

Technical analysis involves studying XPeng's historical price movements to forecast future trends. Key methodologies include:

• Chart Usage: Recognising recurring patterns in XPeng's price charts, such as support and resistance levels, trendlines, and chart formations, helps anticipate potential price movements.
• Technical Trading Indicators: Tools like the Relative Strength Index (RSI), Moving Averages, and the Stochastic Oscillator are essential for assessing momentum, trend direction, and the conditions of XPeng's shares being overbought or oversold.

Fundamental analysis evaluates XPeng's share value via the means of various lenses:

• Financial Statements: Scrutinising XPeng's financial statements, including net revenue, profit and loss statements, and cash flow reports, provides insights into its financial performance and stability.
• Economic Factors: Analysing sector performance, macroeconomic indicators, and regulatory changes impacting XPeng's operations helps gauge the broader economic environment's influence on the company.
• Competitive Analysis: Assessing XPeng's market position against competitors, including market share and product offerings, offers a perspective on its competitive strength within the electric vehicle market and industry trends.

By blending these analytical approaches, investors and traders may be better placed to develop an understanding of XPeng's share price behaviour, which is crucial for CFD trading.

Advantages & Drawbacks of Trading XPeng Share CFDs

Below, we’ll delve into some of the possible upsides and disadvantages of trading XPeng share CFDs by looking both at the firm’s business fundamentals and the features of CFD trading in general:

Pros:

• Tech Advantage: XPeng integrates advanced features like ADAS, intelligent operating systems, and over-the-air updates, appealing enormously to tech-savvy consumers.
• Vertical Integration: By developing core technologies in-house, XPeng enhances user experience and product differentiation, maintaining control over quality and innovation.
• Direct Sales Model: Bypassing traditional dealerships allows XPeng to maintain control over pricing, branding, and customer relationships, leading to more efficient operations.
• Strong Brand Equity: XPeng has cultivated a premium, tech-forward brand image that resonates particularly well with China's urban middle class, enhancing its market position.
• Robust Financial Position: With substantial cash reserves, XPeng can make significant R&D investments, expand its product lineup, and navigate market fluctuations with resilience.

Cons:

• Limited Range: XPeng's current range of models is relatively narrow compared to established automakers, potentially limiting its market appeal and customer base diversification.
• Sinocentrism: Most of XPeng's sales come from China, exposing the company to economic and regulatory risks specific to the domestic market.
• Supply Chain Issues: Like other automakers, XPeng faces risks related to supply chain disruptions and shortages of critical components, which can impact production and delivery schedules.
• Fierce Competitors: The Chinese EV market is fiercely competitive, with numerous domestic and international players vying for market share, placing pressure on XPeng's market position and profitability.
• Profitability: Despite solid revenue growth, XPeng has struggled to achieve consistent profitability due to high R&D and operational costs, posing financial sustainability challenges.
• Leverage Risks: XPeng share CFD trading comes with the potential for large capital losses because of leverage.

Different Ways to Trade XPeng Shares

When trading XPeng share CFDs, various trading approaches can be employed to suit different strategies:

• Fundamental Analysis: To determine its underlying value, assess XPeng's financial health, market position, and growth prospects.
• Technical Analysis: Analysing XPeng's stock price movements, trading volume, and historical patterns to forecast future price movements.
• Combined Analysis: Integrating technical and fundamental analyses to understand XPeng's stock dynamics comprehensively.

After selecting their preferred analysis method, traders can adopt a trading style based on their risk tolerance, investment timeframe, and availability:

• Swing Trading: Holding positions for days or weeks to capitalise on medium-term price fluctuations, offering flexibility amidst market volatility.
• Position Trading: Maintaining positions over extended periods to capture longer-term trends in XPeng's market performance, aligning with a strategic investment horizon.
• Day Trading involves engaging in short-term positions held for minutes to hours, and it requires active monitoring due to its high-frequency nature.

How to Trade CFD XPeng Shares with Plus500 (Step-by-Step)

Here’s a concise guide to trading XPeng shares using CFDs through Plus500:

• Educate Yourself: Understand the mechanics of CFD trading, evaluating both its advantages and risks.
• Open and Fund Your Account: Register on Plus500, get verified, and deposit funds into your trading account.
• Access the Trading Platform: Log in to the Plus500 platform to start trading XPeng share CFDs.
• Choose Your Position: Based on your personal approach, decide whether to open a buy or sell position on XPeng share CFDs.
• Monitor Your Position: Keep track of market movements and manage your position accordingly to optimise potential returns.
• Review and Adapt Your Strategy: Continuously assess your trading strategy, adjusting it as necessary to navigate the dynamic environment of XPeng share CFD trading.

Conclusion

In conclusion, XPeng Inc. is a dynamic force in the global electric vehicle industry, which is marked by rapid growth, technological innovation, and strategic investments. As it continues to expand its product offerings and market presence, its trajectory in the evolving automotive landscape remains one to watch closely.