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China’s electric vehicle market has been roiled by a fierce price war in 2025, with giants like BYD (BYDDY) slashing prices so deeply that insiders warn it’s “not sustainable.” Late last month, regulators even stepped in. Premier Li Qiang decried the “involutionary” competition and urged brands to end their “loss‑leading” tactics.
Yet amid the chaos, XPeng (XPEV) has quietly stood out, delivering over 30,000 vehicles for eight straight months. While peers such as Nio (NIO), Zeekr (ZK) and even Tesla (TSLA) struggle with thinning margins and softening demand, XPeng’s steady deliveries suggest robust consumer appetite and a resilient strategy. Now, with Beijing cracking down on “disorderly” discounting, the playing field may finally stabilize, potentially giving XPEV room to shine.
So, as the EV battlefield reshapes itself, XPeng looks like a rare winner worth a closer look at right now.
About XPeng Stock
Headquartered in Guangzhou, China, it is a prominent player in the smart electric vehicle (EV) market. The company designs, develops, manufactures, and markets a range of smart EVs. Its product lineup includes the P7 and P7i sports sedans, the G9 and G6 SUVs, the X9 seven-seater multi-purpose vehicle (MPV), and the MONA M03 all-electric hatchback coupe. XPeng operates globally, with a significant presence in Europe and Asia, focusing on the mid to high-end segments in China’s vehicle market.
Valued at $17 billion by market cap, XPeng shares have jumped over 140% in the past 52 weeks and extended their rally into 2025, up about 52% year‑to‑date, thanks to its rising sales.
Valuation wise, XPEV looks challenging, with a price-book ratio of 4.1x, significantly higher than the sector median of 2.6x, indicating the stock might be overvalued compared to its peers. Similarly, its price-sales ratio of 1.49x is considerably above the sector median of 0.9x, further suggesting a premium valuation.
XPeng’s Sales Surge Despite Discounts
Remarkably, XPeng has thrived over competitors in sales. In Q2 2025, it delivered 103,181 vehicles (a record quarter) and 197,189 in the first half of 2025, already surpassing its entire 2024 volume. June deliveries alone hit 34,611 units, up 224% year-over-year. XPeng notched eight straight months above 30,000 deliveries. By contrast, peers Nio and Li Auto (LI) saw much more modest growth (Nio’s June was 24,900 units, +17% year-over-year, while Li’s June sales actually fell).
XPeng’s growth is driven by an expanding lineup and heavy investment in AI driving tech. The company claims its in-house “Turing” self-driving chip is 3x more powerful than Nvidia’s (NVDA). It is also rapidly expanding overseas. XPeng is now selling in over 40 countries.
In short, strong execution has kept XPeng’s momentum intact, even as rivals scrambled to cut prices. For example, XPeng sold out 10,000 preorders of its new G7 SUV in 46 minutes. CEO He Xiaopeng has openly challenged Tesla’s Model Y with the new G7, highlighting its superior interior space and advanced tech features. With every model launch and technology demo, XPeng reinforces its “smart car” narrative, helping to justify the stock’s recent strength.
XPeng Beats Q1 Earnings
XPeng delivered a strong Q1 2025, exceeding analysts’ expectations, reporting total revenues of $2.18 billion, up 141.5% year‑over‑year. The net loss narrowed to $97 million, or $0.10 per ADS, versus a $203 million loss a year earlier. Gross margin expanded to 15.6%, up 2.7 points, while vehicle margin rose to 10.5%, driven by improved pricing power and scale.
At quarter‑end, XPeng held $6.2 billion in cash, equivalents and short‑term investments, providing ample liquidity for R&D and charging‑network expansion.
Management projects Q2 2025 revenue growth of 237.5% to 257.5% and deliveries of 102,000–108,000 units, targeting full‑year profitability by Q4 2025. XPeng’s record deliveries, widening margins and robust cash cushion support a cautiously optimistic outlook for sustainable growth throughout the year.
What Do Analysts Think About XPeng Stock?
Turning to Wall Street, analysts seem fairly upbeat on XPEV stock, tagging it as a “Moderate Buy.” Of the 16 experts Barchart follows, nine call it a “Strong Buy,” two echo the “Moderate Buy” view, four recommend a “Hold,” and one flags a “Strong Sell.” With a 12‑month average target of $23.70, there’s still over 35% upside potential from current levels.
