Chinese electric vehicle (EV) maker XPeng (XPEV) is accelerating its global expansion. In an interview with CNBC, CEO He Xiaopeng said that the company’s mass-market Mona brand is set for launch in Europe and other overseas markets early next year. This move is set to increase competition with both established automakers and rival Chinese firms in the global EV market.
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XPeng stock was up more than 4% during Monday’s regular trading session.
The Mona brand’s debut model, M03, is a hatchback electric coupe that was launched in China in August 2024. The vehicle now makes up about half of XPeng’s car sales in China. With a price tag between 119,800 and 155,800 yuan, it is the company’s most affordable model.
Further, the company plans to introduce more Mona models to Chinese, European, and other global markets in 2026. These new vehicles are expected to be more affordably priced than XPeng’s current flagship models, such as the P7 and G6.
XPeng’s European Strategy
This move is backed by XPeng’s growing investment in Europe. The company recently opened a new R&D center in Munich, Germany, and is exploring the possibility of manufacturing its cars in Europe.
Meanwhile, XPEV faces several challenges, including the European Union’s tariffs on China-made EVs and intense domestic competition.
Overall, by targeting the cost-conscious segment, XPeng hopes to win over buyers in Europe, where demand for affordable EVs is rising and competition from brands such as BYD (BYDDF), Tesla (TSLA), and Volkswagen (VWAGY) is heating up.
Is XPEV a Good Buy Now?
Turning to Wall Street, XPEV stock has a Moderate Buy consensus rating based on nine Buys, two Holds, and one Sell assigned in the last three months. At $25.75, the average XPeng stock price target implies a 24.58% upside potential.
