Xpeng (XPEV) is on the move. All after Volkswagen announced it will invest $ 700 million in the company to develop EVs together, we noted on July 26.
At the time, the stock traded at around $18 a share, and would race to a high of $23.62. Now, after pricing in the Volkswagen news, it’s starting to pivot lower. In fact, it may be best to short the XPEV stock here or buy a put option. There are two reasons for that. One, the stock became technically overbought on RSI, MACD, and Williams’ %R.
Two, UBS analysts just lowered its rating on XPEV to neutral from buy on the idea the latest news is already fully priced into the stock. “While the VW collaboration will proceed over the next three years, the company remains vulnerable in a fiercely competitive market and needs to recover its profitability,” the firm said, as quoted by Seeking Alpha.
XPEV last traded at $20.23, down 13.5% on the day.
