XPeng (XPEV) Analysis
XPeng is a prominent player in China’s electric vehicle market, priding itself on innovation and “smart” cars. The company can be compared to Tesla, with its primary focus on advancing vehicle technology and transforming passengers’ experience through autonomous driving, advanced connectivity, over the air updates (just like a phone), and other in-car services. Like Tesla, XPeng sees themselves less than a vehicle manufacturer and more of a technology company, and they’ve surely caught the eye of investors for this reason.
$XPEV is up 93% year to date, even after the big pull back its seen in recent weeks. The stock’s rally can be attributed to their strong financial performance, which showed 138%, 125%, and 102% quarterly revenue growth for the first three quarters of 2025. The company’s revenue is set to double from last year’s $5.60B to $11.40B, reflecting strong sales and a promising path to taking a big share of the EV market.
Even though XPeng sees itself as more of a technology company rather than a vehicle manufacturer, their vehicle deliveries still matter. Here’s how they’re doing against competitors:
- XPeng: 355,209 vehicles delivered in 2025.
- Nio: Delivered 241,618 vehicles in 2025.
- Tesla: 1.61 million estimate in 2025
- BYD: no exact number YTD, but they’re ranked #1 in EV market share (22.3%).
As for valuation, XPEV trades at a price to sales ratio of 2.4x, which is higher than NIO’s 1.4x and BYD’s 1x. Comparing the company to BYD may be a long shot because it’s like comparing Rivian to Ford (in terms of size and reach), but as a new “up and coming” EV company, they’re performing pretty well. Although not yet profitable, the company is efficient. They’re close to achieving net income, with about -1.87% net margin last quarter, much better than NIO at -27%. It’s difficult to achieve profitability in a vehicle manufacturing space, especially for young companies, so XPeng’s performance is a reflection of proper capital management.
Xpeng increased vehicle deliveries by 190% compared to last year so far, a direct reflection of market capture and is an indicator that they’re growing popular. The next phase of their business depends on durability, sustainability, and licensing. The company’s big focus on technology includes rolling out robotaxis (just like Tesla), autonomous driving, even flying cars, all of which are planned for 2026. Though ambitious, if these projects do pan out, it could mean there’s a lot of room for growth in the coming years. Licensing could especially be profitable because it means they’d supply other car companies with their smart chips / technology, they’re already in talks with Volkswagen to do so.
Investors looking at this stock should consider that it is a Chinese company and will be exposed to geopolitical uncertainty, currency risk, and shifts in China’s regulatory environment. China is still heavily supporting its domestic EV and manufacturing sectors, which has been a major tailwind, but any reduction, policy pivot, or tightening in that support could directly impact margins, growth, and overall sentiment toward companies in the space. As a result, while the upside can be significant, investors should weigh these structural risks alongside the company’s fundamentals before taking a position.
Technical Analysis:
As shown in the chart above, XPEV is trading right at a trend line that stretches back to July. A move below this line could deepen the correction, but fundamentally it remains attractive. The chart’s short-term movement seems to be apart of the overall market’s decline, especially in technology and Chinese equities.
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