Xpeng (NYSE:XPEV) stock has seen renewed investor enthusiasm as it gears up for further expansion, and the company is not alone. 

There is a lot of action going around the electric vehicle industry, and the industry is set to boom as different countries take leaps towards a better tomorrow.

Despite the competition, Xpeng is making strong moves in the industry and its delivery numbers are proof that the company is going in the right direction.

XPEV stock withstood the pandemic and the chip shortage. I am bullish on the stock and believe the company is one of the best EV bets today.

Let’s dig deeper into the investment case of XPEV stock. 

A Closer Look at XPEV Stock

XPEV stock has had a wild ride over the last year, up 82%. The stock hit an all-time high of $74 in November 2020 and is nowhere close to the high right now.

However, the stock has the potential to cross the $50s mark and soar higher. It is currently exchanging hands for nearly $40 and has the potential to hit new highs when it reports Q2 earnings this month. 

President Biden is working toward a cleaner tomorrow, and the administration has recently vowed to push the sales of EVs to 50% of all the new car purchases by the end of 2030. There is enough time for all the car makers to shift towards battery power. 

To achieve the goal, the country is going to follow a strategy that is similar to that of China and Europe where EVs are promoted through regulations, subsidies and incentives. 

This move will benefit the carmakers that have already built a strong presence in the market. They are also going to benefit from the support provided by the government. 

Tesla (NASDAQ:TSLA) is certain to benefit from the push towards EVs as it has already established its brand in the market but there is a lot to look forward to for Chinese EV manufacturers like XPeng and Nio (NYSE:NIO).

As electric vehicles become less expensive, consumers will be more enthusiastic about buying them. By setting a target for electric vehicles, the Biden administration is making clear that clean transportation is the future. This could lead to a massive surge in demand and XPeng is well-positioned to make the most of the momentum. 

EU Proposal 

The U.S. is not the only country transitioning towards EVs. The EU intends to ban the sale of non-electric vehicles by 2035 and if this proposal is implemented, it will increase the opportunity of the company in Europe. 

XPeng already has a presence in Norway and an EV push in the EU will make it easier for the company to expand. 

The company already has a stellar market in China and its delivery numbers are proof that consumers are enjoying XPeng’s EVs. With 228% year-over-year growth in July, the company’s delivery numbers exceeded 8,000. If it manages to expand the production capacity in time, there is no limit to the amount of growth it can achieve.  

The Bottom Line 

With the U.S. and EU promoting EV cars and taking the necessary steps to support EV car makers, XPeng looks well-positioned to scale new heights.

With impressive delivery numbers and a stronghold in the market, XPeng could show many more positives in the second half of the year. 

The EV push in the U.S. and EU will give a chance to several new players to enter the market and build EVs from the ground up. Companies that have established themselves with impressive models and address the right price point will continue their stronghold, though. 

The company reports Q2 results on August 26, which will give a perspective to the investors. I believe the company has the potential to beat analyst estimates.  

XPEV stock is a buy for long-term investors.