Here's why this EV stock skyrocketed in a week

Core Viewpoint - XPeng has experienced significant growth in 2023, marked by ambitious expansion plans, strong vehicle delivery results, and a notable stock price increase, despite a cautious outlook from analysts regarding its valuation and market competition [1][2][3]. Group 1: Company Expansion and Performance - XPeng plans to hire up to 6,000 new workers and expand to 60 markets, indicating aggressive growth strategies [1]. - In January, XPeng delivered 30,350 vehicles, surpassing 30,000 for the third consecutive month and outpacing rival Li Auto for the first time since September 2022 [2]. - As of February 27, XPeng's stock price reached $22.14, reflecting a 16.76$8.8 to $18, indicating a cautious but improved outlook [4]. - Gong noted that XPeng's focus on AI technology could attract investor interest, especially following recent market shifts [5]. - The stock's valuation is considered high at 1.4x estimated 2026 price-to-sales, approximately double that of competitors like Li Auto and Nio [6]. - Despite recent sales momentum, XPeng faces vulnerabilities from price competition in the mass market and challenges from competitors like BYD [7].