The Bullish Case: One of the industry leaders in the largest automobile market in the world that is actively trying to shift to electric vehicles. That alone is a bullish argument for any of the big electric vehicle companies in China. XPeng has two models that are currently on the roads: the SUV G3 and the sedan P7. At the recent Auto Shanghai 2021 show, XPeng unveiled its smaller P5 sedan model that is the first production car in the world to utilize built-in lidar technology. Lidar uses lasers and sensors, rather than radio waves, to detect obstacles in the vehicle’s close proximity, and is the main technology that automakers are using in self-driving, autonomous vehicles. This works alongside XPeng’s XPilot self-driving software that has rolled out to its vehicles, which has brought in some nice recurring revenues for the company. These have helped to raise gross margins from 7.4% to 11.2% from the previous quarter, and up from -4.8% year over year. XPeng is about to ramp up production too. It is adding a second production facility in Guangzhou that is slated to open at some point in 2022, and just announced a new plant in Wuhan, which will have a capacity of 100,000 vehicles per year when it opens in 2023. XPeng was the first Chinese automaker to begin delivering its vehicles to Europe starting in December, and is working to expand its presence on the continent in 2021.