China-based EV-maker XPeng Inc (NYSE:XPEV) faces bearish signals ahead of an Aug. 27 launch event for the Mona M03, a car model priced under RMB 200,000 (US$28,000).
The launch event comes on the heels of its second-quarter earnings report, scheduled for release on Tuesday, Aug. 20, before market hours.
Wall Street expects the manufacturer to report negative 18 cents in earnings per share and $1.1 billion in revenues as the company.
Let's look at what the charts indicate for XPeng stock and how the stock currently maps against Wall Street estimates.
Chart created using Benzinga Pro
XPeng Stock
XPeng stock is down over 50% year-to-date, and about 18% in the past month, despite excitement surrounding the launch event and its 10th anniversary celebration.
XPeng's stock currently faces strong bearish signals. The share price of $7.14 is trading below its 20-day and 50-day exponential moving averages (EMA), indicating a downward trend.
Chart created using Benzinga Pro
The MACD indicator at a negative 0.36 and the RSI at 41.99 suggest that the stock is closer to being oversold, though there is slight buying pressure as the price is just above its five-day EMA of $6.97.
Technically, the company remains under pressure with its stock trading well below the 200-day EMA of $9.62, pointing to potential further downside despite the upcoming launch. While the Bollinger Bands range between $6.26 and $9.23, the stock is trading near the lower band, reinforcing the bearish outlook.
Investors should closely watch the Mona M03 launch for any potential shifts in sentiment. They should also be mindful of how the Beijing-based company's recent organizational overhaul unfolds. XPeng, like its rival China-based EV-makers NIO Inc (NYSE:NIO) and Li Auto Inc. (NASDAQ:LI), is focusing on artificial intelligence.
Read Also: What's Going On With Chinese EV Manufacturer XPeng Stock Today?
XPeng Analysts See 26.23% Upside: The consensus analyst rating on XPeng stock stands at a Neutral currently with a price target of $16.21. The three most recent analyst ratings for XPeng stock, from BofA Securities, Citigroup and Macquarie, suggest an average price target of $9, implying a 26.23% upside.
XPEV Price Action: XPeng stock was trading at $7.13 at the time of publication.
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