Xpeng Soars 5.42%—What’s Fueling This Electric Surge?

Summary
• Xpeng Inc. (XPEV) surges 5.42% intraday to $21.295, breaking above its 52-week high of $27.16
• Mona M03 deliveries hit 15,758 units in July, contributing 42.92% of total sales
• Institutional investors boost holdings, with Virtu Financial acquiring 106,339 shares

Xpeng’s stock is riding a wave of momentum as its Mona M03 model dominates deliveries and institutional demand surges. The stock’s 5.42% gain on the day reflects a confluence of strong product performance, bullish investor sentiment, and strategic institutional backing. With the stock trading near its 52-week high and key technical indicators flashing bullish signals, the question is: Can this rally sustain its pace?

Mona M03 Dominance Drives Xpeng’s Rally
Xpeng’s 5.42% intraday surge is directly tied to the stellar performance of its Mona M03 model, which delivered 15,758 units in July—11.67% higher than June and accounting for 42.92% of total deliveries. This model’s sustained momentum, now in its 11th consecutive month of exceeding 10,000 units, underscores Xpeng’s ability to capture market share in China’s competitive EV sector. Institutional buying, including Virtu Financial’s new position of 106,339 shares, further amplifies confidence in the company’s near-term trajectory. The stock’s breakout above key resistance levels and alignment with bullish technical indicators suggest a self-reinforcing cycle of demand and optimism.

EV Sector Gains Momentum as Tesla Leads
The broader EV sector is showing resilience, with Tesla (TSLA) surging 3.76% as a sector leader. While Xpeng’s rally is product-driven, Tesla’s gains reflect broader investor appetite for EV innovation. Xpeng’s 5.42% move outpaces peers like NIO (-2.92%) and Li Auto (-2.92%), highlighting its unique positioning in the Chinese market. The sector’s mixed performance underscores Xpeng’s differentiation through its Mona M03’s affordability and delivery consistency.

Options Playbook: Leverage Xpeng’s Bullish Momentum
• MACD: 0.246 (above signal line 0.046), RSI: 71.3 (overbought), Bollinger Bands: Price at $21.295 (above middle band $18.65)
• 200-day MA: $17.15 (below current price), 50-day MA: $18.42 (below current price)

Xpeng’s technicals suggest a continuation of its bullish trend, with key support at $17.33 (lower Bollinger) and resistance at $21.62 (intraday high). The stock’s 71.3 RSI indicates overbought conditions, but strong volume (7.9M shares) and institutional buying signal sustained momentum. For leveraged exposure, consider the following options:

• XPEV20250815C21: Call option with strike $21, expiring 8/15. Key stats: IV 51.38%, leverage 30.48%, delta 0.619, theta -0.1557, gamma 0.297. This contract offers moderate leverage with high gamma, amplifying gains if the stock breaks above $21.62. Projected 5% upside (to $22.36) yields a payoff of $1.36 per contract.
• XPEV20250815C22: Call option with strike $22, expiring 8/15. Key stats: IV 53.91%, leverage 76.20%, delta 0.328, theta -0.106, gamma 0.268. High leverage and moderate delta make this ideal for aggressive bulls. A 5% move to $22.36 generates a $0.36 payoff, with theta decay (-0.106) favoring quick moves.

Action: Aggressive bulls may consider XPEV20250815C21 into a breakout above $21.62. For higher leverage, XPEV20250815C22 offers amplified returns if the stock accelerates.

Backtest Xpeng Stock Performance
XPEV's stock performance showed a positive reaction to the news of its first hybrid model, the X9 MPV extended-range electric vehicle (EREV), which is set to launch in the fourth quarter. The stock surged by 7.94% to HK$85.65, hitting a five-month high, indicating investor optimism about XPEV's sales prospects.

Xpeng’s Rally: A High-Velocity Trade with Clear Targets
Xpeng’s 5.42% surge is underpinned by product-driven demand and institutional validation, with technicals and options data pointing to a continuation of the bullish trend. The Mona M03’s dominance and Tesla’s 3.76% lead in the sector suggest EVs remain in focus. Investors should monitor the $21.62 intraday high as a critical resistance level and watch for follow-through volume. For those seeking leverage, the XPEV20250815C21 and XPEV20250815C22 options offer tailored risk-reward profiles. Act now: Target $21.62 for a breakout trade or consider the 8/15 calls for leveraged exposure.