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Globe and Mail
28-05-2025
- Automotive
- Globe and Mail
Xpeng Motors Stock Forecast: Should You Buy the Dip in XPEV or Panic Sell Amid Price War?
While Xpeng Motors (XPEV) is up over 65% for the year to date, it has looked weak in recent days and has come off its highs. The company's Q1 2025 financial performance was quite impressive, but concerns over regulatory scrutiny over sales of new cars as 'used cars' in the second-hand market by some automotive companies in China and an escalating price war in China have pressured XPEV stock. In this article, we'll discuss whether you should buy the dip in the stock or steer clear. Xpeng Motors Stands Out Due to Strong Execution Xpeng Motors has impressed with its strong execution over the last few months. The company has delivered over 30,000 vehicles for six consecutive months, and its Q2 guidance implies that the run rate will be sustained in May and June as well. Xpeng Motors' Mona M03 has been a success story, and the model's cumulative sales have surpassed 100,000 units in eight months since its launch. The company's P7+ also achieved the milestone of 50,000 cumulative deliveries in the first five months of its launch. The strong growth in deliveries has resulted in economies of scale, and its gross margins have expanded for seven consecutive quarters, reaching a record high of 15.6% in the March quarter. The company is still posting a loss, but its net loss more than halved to $0.09 billion in Q1, which was the lowest in five years. The company has also turned a corner on free cash flow, and the metric surged above $400 million in Q1. Xpeng Motors Expects Strong Growth in 2026 Also Xpeng Motors expects its sales to more than double this year and is optimistic about posting a net profit in the final quarter of the year, while generating 'substantial free cash flow for the entire year.' The company expects its gross margin to push toward the high teens in the second half of the year, amid continued cost-cutting efforts. Xpeng Motors is set to launch several new models over the next year, which will help drive its deliveries in 2026 and beyond. Among others, it plans to launch new models in the Mona series, which is in the budget range. Xpeng Motors has developed its custom Turing chip, whose production has already commenced. The company will use these chips in its cars, which will help it lower costs and also enhance its autonomous driving capabilities. XPEV is leveraging its lead in autonomous driving and working on humanoids – a strategy similar to that of Tesla (TSLA). International expansion is another growth driver for Xpeng Motors. Last year, it sold 20,000 cars in global markets and expects the volumes to double in 2025. The company listed Europe, the Middle East, and Southeast Asia as its focus global markets for this year. China's EV Price War Is Worsening China boasts of dozens of electric vehicle (EV) companies, some of which happen to be listed stateside. The country is also home to BYD (BYDDY), which is the world's largest seller of new energy vehicles (NEVs), and looks set to dwarf Tesla's annual battery electric vehicle deliveries this year. While there has been a price war in China for the last few years, there are signs that things might worsen further as market leader BYD has also cut prices on multiple models. After the price cuts, BYD's seagull hatchback will be priced at just $7,780 in China. The company is looking to grow its deliveries to 5.5 million this year, as compared to just about 4.3 million last year, and the price cuts should help it meet the target. Notably, while BYD has aggressively slashed prices for lower-end cars, the premium lines have been spared from price cuts that will run until the end of June. So far, Xpeng Motors hasn't responded to the cuts, but the company might need to react to pricing strategies of its competitors, especially if BYD extends the scope of its cuts beyond June. While a price war is seldom a positive, Xpeng Motors should be able to tackle the headwinds better given its relatively strong financial position, as it had a cash pile of over $6.2 billion at the end of March. Also, the company has a technological advantage over most of its peers and offers a good value proposition with advanced self-driving features. From a valuation perspective, the stock trades at a next 12-month enterprise value-to-sales multiple of 1.46x, which is similar to what it has averaged over the last three years. However, after its impressive execution over the last few months, the stock has earned the right to trade at premium valuations. Overall, given the stock's positive long-term fundamentals, I won't panic sell XPEV amid the price war and will instead add to my existing positions if the stock comes under pressure. XPEV Stock Forecast Wall Street analysts are also reasonably bullish on XPEV, and it has a consensus rating of 'Moderate Buy' from the 14 analysts covering the stock. The stock has a mean target price of $22.83, which is 17.1% higher than the current price.
WIRED
03-05-2025
- Automotive
- WIRED
The Self-Driving XPeng P7+ Does Great on Real Roads. Look Out, Tesla
Xpeng is seen by some as the Chinese answer to Tesla, not only because of its emphasis on tech, particularly self-driving, but also in terms of positioning. One of three Chinese EV start-ups listed in the US for a long time, it was best seen as an also-ran thanks to disappointing sales against better-known Nio and sales powerhouse Li Auto. That all changed for Xpeng last year thanks to two new models. Sales of the first, the Xpeng Mona M03, began in August and quickly the car became Xpeng's best-selling model. Then, in November sales began of XPeng P7+, and it marked a huge reset for the Shenzhen-headquartered start-up. The unveiling of the P7+ at last year's Paris Auto Show in Europe speaks volumes about the growing confidence of the company, along with the rapid acceleration of exports. April this year saw the car displayed at Milan Design Week before going on sale on the continent later in 2025. Xpeng already sells cars in the UK, Germany, France, Denmark, Sweden, Finland, Norway, Iceland, the Netherlands, Belgium, Luxembourg, Spain, Portugal, Ireland, Poland and Italy. Both the Mona M03 and P7+ are actually liftbacks, a type of hatchback. As such, they differ significantly from XPeng's previous cars, which were all sedans and SUVs, and a strange choice given the limited appeal of liftbacks in the Chinese market. Photograph Courtesy of XPeng However, far more importantly, setting the P7+ apart from all previous Xpeng cars is its democratization of self-driving features. Xpeng has long prided itself on its prowess in this area. In 2021, the company was the first to launch a mass-produced car equipped with Lidar, the P5. This by 2022 allowed what Xpeng refers to as NGP (navigation guided pilot) for self-driving (officially driving assistance) in a select band of cities (City NGP), a first in China. Complete Reset In 2023, Xpeng introduced a more advanced version called XNGP on its G9 and P7i models, we tested it on the latter. Xpeng gradually rolled it out across the country until the system covered most roads in China. The problem was that as Xpeng rolled the system out through its range, each model took a two-tier approach to the self-driving ADAS features. On the top-of-the-range Max versions they used Lidar, while lower spec versions made do with a camera-based system, which restricted usage to highways. Xpeng's P7+ marks a complete reset. Gone are the expensive Lidar units, and yet from launch Xpeng claimed the P7+ was capable of the same level of driving assistance as its Lidar-toting models. With sensors now consisting of 12 external cameras, 12 ultrasonic sensors, and 3 millimeter wavelength radars, according to the brand it allows both versions (there are only two) of the P7+ to offer the same flagship level of self-driving ability. And unlike Tesla and some others, it comes at no extra cost to purchasers. We'll come back to this. The size of the battery pack and the power of the motor are the only real differences between the two versions of the P7+. My test car was the Ultra-Long Range Max, which has the larger 76.3-kWh battery pack and a more powerful 230-kW motor. Both models use lithium iron phosphate batteries but the cheaper Long Range Max version uses a smaller 60.7-kWh pack. Currently, the P7+ only comes with a single rear-mounted electric motor, and the base model makes do with a less powerful 180-kW unit. Range for WIRED's test version is claimed to be 450 miles using China's urban driving-skewed and more forgiving CLTC test cycle.
Yahoo
03-03-2025
- Automotive
- Yahoo
XPeng (NYSE:XPEV) Surges 69% With UK Market Debut and New Dealerships
XPeng recently reported a significant 69% price increase over the last quarter, reflecting strong momentum driven by its exceptional operational achievements and international expansion activities. The company demonstrated impressive performance with a 570% year-over-year increase in vehicle deliveries as of February 2025. Noteworthy was XPeng's entrance into the UK market and its collaboration with IML to establish 20 dealerships, further marking its intent with viable plans for European market entries in Poland, Switzerland, and other countries. Moreover, while broader economic conditions show volatility, dragging down major indices like the Nasdaq, XPeng's advancements in EV technology and rapid global expansion have resonated well with investors, positioning the company above the market's general trajectory. Amidst economic uncertainties and trade policy fluctuations, XPeng's focus on delivering innovative vehicle solutions and expanding global presence seems to have driven its recent share price surge. See the full analysis report here for a deeper understanding of XPeng. Over the past year, XPeng shares have delivered a total return of 134.86%. This impressive performance significantly outpaces both the US Market's 15.3% and the US Auto industry's 30.3% return during the same period. A key driver of this substantial growth is XPeng's aggressive international expansion, such as its entry into markets like Switzerland, Czech Republic, and Slovakia in late February 2025. Additionally, the collaboration with Volkswagen Group in April 2024 to develop E/E Architecture for vehicles in China highlights XPeng's commitment to enhancing its technological capabilities. XPeng's vehicle delivery figures also contribute to its robust performance. For instance, an immense year-over-year increase in vehicle deliveries in early 2025 showcases strong demand. In December 2024, the release of the P7+, an AI-defined smart electric fastback sedan, further demonstrated XPeng's focus on advanced vehicle technology. Despite not yet achieving profitability, the company's strategic actions and innovations in expanding its global presence have resonated well with investors. See how XPeng measures up with our analysis of its intrinsic value versus market price. Analyze the downside risks for XPeng and understand their potential impact—click to learn more. Have a stake in XPeng? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:XPEV. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
25-02-2025
- Automotive
- Yahoo
Automotive experts weigh in on dramatic shift of technologies within Chinese electric vehicles: 'A whole suite of new features'
Switching to an electric vehicle is a smart move for your pocketbook and the planet. And industry experts in China believe the cars are now so advanced that a name change is warranted. According to Business Insider, there's a push to start referring to the cleaner rides as EIVs, for "electric intelligent vehicles." "E enables I, so that offers a whole suite of new features to consumers, which cannot be offered with traditional combustion-engine cars," Contemporary Amperex Technology, or CATL, co-chairperson Pan Jian told the outlet. China's CATL is the world's largest battery maker, operating in a country where EVs are thriving. The Chinese EV market is forecast to hit nearly $378 billion this year. Comparatively, the U.S. sector is expected to grow to more than $104 billion, all per data collector Statista. In total, global full-battery and plug-in hybrid sales jumped 25% in 2024 to a record 17 million-plus vehicles, according to Reuters. While Texas-based Tesla is the global leader in EV sales, China has an impressive roster of companies putting out cutting-edge tech that's augmented with artificially intelligent software. NIO's EVs — ahem, EIVs — include an AI dashboard-based assistant that has eyes and interacts with the driver. It can help to navigate the vehicle into the company's unique battery swap stations. Business Insider reported that smartphone maker Xiaomi has developed an EIV that includes voice-recognition software and the ability to control household appliances while on the road. Xpeng, a startup, is marketing its P7+ as being "AI defined." The cleaner rides also come at more affordable prices, with some starting at $26,000, all per Business Insider. And BYD, a company annually sparring with Tesla for the top EV sales spot, intends to pump $14 billion into AI features and self-driving tech, the report added. Analyst Zoe Zhang, from London energy consultancy firm Rho Motion, told Business Insider that EVs are easier to incorporate AI functions into compared to internal combustion rides, "because of the chips." If you were going to purchase an EV, which of these factors would be most important to you? Cost Battery range Power and speed The way it looks Click your choice to see results and speak your mind. The advancements arrive as many of the long-held EV stress points are vanishing. Battery fires are less likely than gas-engine blazes, according to Motor Trend and other publications. Hundreds of miles of range, and minutes-long charge times, are eliminating logistical fears. Tesla's 60,000-plus network of global Superchargers can provide 200 miles in 15 minutes, for reference. And while about 30 million tons of minerals are forecast to be needed annually to power the transition to a cleaner future, that pales in comparison to the 15 billion tons of fossil fuels already mined from Earth each year, according to Sustainability by Numbers. Each EV that replaces a gas-burner prevents thousands of pounds of heat-trapping air pollution each year, as noted by U.S. Department of Energy data, driving home the point that EVs are more sustainable long-term options. Preventing the fumes is important, as the pollution is linked by NASA to increased risks for severe weather. Whatever you call them, switching to an EV or EIV can save you around $1,500 per year in gas and maintenance costs, too. That's not mentioning up to $7,500 in tax incentives that remain available. "I think more and more, the car manufacturers are going to be really competing over the user experience," Zhang told Business Insider. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
07-02-2025
- Automotive
- Yahoo
Xpeng outsells Li Auto in January to become top seller among EV startups
Xpeng dethroned Li Auto as China's largest electrified vehicle startup in January, with sales surging 268 percent from a year earlier to 30,350 on demand for its two newest models. The Mona M03, a compact full electric sedan which debuted in Xpeng's China showrooms on Aug. 27, generated sales of more than 15,000 last month, the company said. Deliveries of the P7+, a midsize electric sedan, topped 10,000 last month. It went on sale Nov. 7. Xpeng's China sales have now topped 30,000 three straight months. RELATED ARTICLE: Chinese EV maker Xpeng to break even in 2025, president says Li Auto, the top seller among EV startups in December, saw its January deliveries dip 4 percent year over year to 29,927. The decline reflects the timing of the Lunar New Year holiday, which began Jan. 28. Last year, it started Feb. 10. Despite fewer working days compared with the same month last year, two other major Chinese EV startups ― Leapmotor and Nio ― racked up impressive sales growth in January. Leapmotor's deliveries soared 105 percent from a year earlier to 25,180 last month while Nio sales jumped 38 percent to 13,863. December sales totaled 58,513 at Li Auto, 42,517 at Leapmotor, 36,695 at Xpeng and 31,138 at Nio. In 2024, the four largest EV startups were Li Auto, with sales of 500,508; Leapmotor, with 293,724 deliveries; Nio, with sales of 221,970; and Xpeng, with 190,068 deliveries. Li Auto posted a profit for the first time in the first quarter of 2023 and Leapmotor became profitable in the fourth quarter of 2024. Xpeng and Nio have yet to break even.
