Keep an eye on XPeng (XPEV).
After pulling back to $14, the stock is starting to pivot higher. All after Bank of America upgraded the stock to a buy, with a $22 price target. The firm likes the $700 million from Volkswagen, which could lead XPEV to produce profits and positive free cash flow in 2025.
Plus, according to the company’s latest earnings call, CEO Xiaopeng He noted, “We’ll embark on broad-based collaborations to develop EV platforms and intelligent software technology, creating long-term value for both companies.”
Better, according to Barron’s, “The 2025 free cash flow prediction is about a year earlier than the consensus calls on Wall Street. Positive free cash flow, which most often allows a company to fund its own growth, is an important metric for any company, especially EV makers.”
Technically, after dipping from about $23 to $14, the stock found strong support and is starting to pivot higher. From its current price of $16.53, we’d like to see XPEV again test $23.