XPeng Has Too Many Risks And No Convincing Reasons To Invest Here

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Robert Way

Investment Thesis

XPeng (NYSE:XPEV) continues to achieve rising car sales figures, but this has not led to significantly higher sales and better margins in the past two years. It is questionable whether this trend will continue, given the immense

Investor’s Checklist

Check

Description

Rising revenues?

No

Increasing over longer periods

Improving margins?

No

Possible competitive edge

PEG ratio below one?

No

PEG ratio below one may suggest undervaluation

Sufficient cash reserves?

No

Vital for the survival & growth, especially of unprofitable companies

Rewards shareholders?

No

Returning capital to shareholders

Shareholder negatives?

Yes

Actions that disadvantage shareholders

Stock in an uptrend?

No

Trading above its 200-day moving average?