Shares of Xpeng (XPEV) are surging today after the Chinese EV maker announced plans to expand into the Middle East and Africa. More precisely, the company said that it will enter the Qatari market through a partnership with a subsidiary of Almana Group, which will serve as its exclusive distributor in the country. At the same time, Xpeng is teaming up with Axess Limited to bring its vehicles to Mauritius in East Africa. Xpeng will begin by launching its G6 and G9 SUV models in Qatar, with the P7+ sedan expected to follow at a later date.
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Interestingly, the firm stated that Qatar will act as an important gateway for connecting with global customers while demonstrating its smart mobility technology. It is also worth noting that the company already operates an experience center in Abu Dhabi, a showroom and service center in Egypt, and an accessories warehouse in Dubai. Unsurprisingly, Xpeng is hoping to close the gap with BYD (BYDDF), which is currently the largest Chinese EV brand in the Middle East and North Africa.
What’s impressive is that Chinese EVs are expected to capture 34% of the Middle East and Africa market by 2030, up from 10% in 2024, according to AlixPartners. Even more important is that nearly three-quarters of EV buyers in the Middle East say they trust Chinese-made vehicles, which is more than twice the share who trust U.S.-made EVs. Therefore, this makes the region a key opportunity for Xpeng.
Is XPEV Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on XPEV stock based on four Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average XPEV price target of $29.67 per share implies 41.9% upside potential.
