Xpeng Takes On Tesla, Volkswagen In Norway: What Investors Should Know

Chinese electric vehicle company Xpeng is beginning its expansion into Europe with a launch in Norway.

What Happened: The first 100 Xpeng G3 electric sedans from Xpeng Inc XPEV have arrived in Norway. The company told Cleantechnica that deliveries will being in mid-December.

The G3 comes with a base price of $40,930 and 280-mile range.

Related Link: Chinese EV Makers Under More Pressure Amid Xpeng Offering, Reports Of Chip Shortage

Why It’s Important: The G3 is going on sale in Norway, a country that has been ahead of the game when it comes to electric vehicles.

Eighty percent of new vehicle sales in Norway in November were electric vehicles. Around 56% of new vehicles were fully electric.

Petrol vehicles and diesel vehicles represented 5.1% and 5.4%, respectively, of new sales in Norway during the month.

Gas is $7 a gallon in Norway, and the sale and usage of non-electric vehicles is discouraged.

Electric vehicles have made up 73% of new vehicle sales in Norway year-to-date. The last three months have all seen electric vehicle sales represent 80% or more of new vehicle sales.

Competition In Norway: In November, the ID.3 from Volkswagen AG VWAGY ranked first in electric vehicle sales. The Model 3 from Tesla Inc TSLA ranked 10th.

Ford Motor Company F is also launching its electric Mach-E Mustang in Norway soon.

Tesla dominated Norway for some time, but is now seeing increased competition. The company’s Model 3 peaked in March 2019, with 31% market share and 5,700 units sold.

Tesla has been hurt by competition in the market and could have been hurt by factory shutdowns in the U.S. that led to fewer vehicle shipments to Europe in the third quarter.

Tesla’s Berlin Gigafactory could help with gaining market share again, as Tesla continues to sell all the vehicles it ships to Norway.

Tesla also lowered the price of its Model 3 to $42,362 recently, which could help spark sales. 

Benzinga’s Take: Xpeng saw deliveries increase 342% year-over-year for the month of November with 4,224 units. The company is guiding for 10,000 units delivered in the fourth quarter.

Entering Norway could be the perfect start to Xpeng expanding in Europe as it hits the most mature market for electric vehicles.

XPEV Price Action: Shares of Xpeng were up 3.01% at $49.69 at last check Tuesday. Shares have traded between $17.45 and $72.17 since going public in 2020.

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Courtesy photo. 

Posted In: Cleantechnicaelectric vehiclesEVsNorwayXpeng7NewsEurozoneGlobalMarketsTechMediaTrading Ideas