China-based Xpeng stock is catching its breath after a two-day rally and a gain of over 20% last week. The electric vehicle maker recently reported record second-quarter vehicle deliveries.
The IBD 50 Growth Stocks To Watch name has far outperformed rival Tesla shares. It's no surprise the EV stock is climbing, as Xpeng's sales have exploded.
The IBD 50 name designs and makes so-called "smart EVS," and it markets to technology-savvy middle class consumers. Its sophisticated systems include advanced driver-assistance technology.
On Aug. 15, Xpeng and the Volkswagen Group said they agreed to expand their technical collaboration. The shared strategic objective is to expand Xpeng's Electrical/Electronic architecture, or E/E Architecture, within the Volkswagen Group.
Xpeng on July 3 launched the G7, a smart electric family SUV, and started deliveries in the same month.
The China-based company has offices in Silicon Valley and San Diego. It reported it had 677 physical stores as of June 30.
Xpeng is tied for first place with Ferrari out of 29 stocks in the Auto Manufacturers group. Whereas, rival Tesla stock holds the 8th spot. The group ranks 89th out of the 197 industry groups that Investor's Business Daily tracks.
Sales at Xpeng have been ramping up, with its latest two quarters showing triple-digit growth. In contrast, Tesla's revenue has fallen for two straight quarters and its profit has dropped for seven out of the last eight quarters.
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Xpeng Stock Outperforms 97% Of Names
Xpeng's stock performance has also blown away Tesla's. Xpeng has nearly doubled, while Tesla stock has fallen around 14% so far this year. And Xpeng stock holds a 97 out of 99 possible IBD Relative Strength Rating.
The vehicle stock is in an early-stage consolidation pattern with a 27.16 buy point, according to MarketSurge pattern recognition.
Its volume has been picking up as seen in its 1.6 up/down volume ratio, which shows positive demand over the last 50 days.
Electric Vehicle Maker Rocks Record Deliveries
Xpeng on July 31 said it delivered 36,717 smart EVS in July, a 229% increase from a year ago. On Aug. 19, the company posted a smaller-than-expected second-quarter loss. Its sales crushed estimates, soaring 125% to $2.55 billion.
Xpeng delivered a record 103,181 vehicles in the second quarter, which slightly lagged analysts' expectations. This compares with 30,207 in the prior year's quarter.
Gross margin rose to 17.3% in the second quarter vs. 14% in the second quarter of 2024.
"In the second quarter of 2025, Xpeng achieved record-high performance across key operational and financial metrics, including vehicle deliveries, revenue, gross margin and cash position," Xiaopeng He, Xpeng's chief executive, said in the earnings release.
"We are confident that we will not only accelerate scale growth but also continue to improve the company's profitability, enabling us to sustain industry-leading R&D and continuously push the boundaries of technology innovation," Xiaopeng said.
Xpeng said it expects to deliver 113,000 to 118,000 vehicles in the third quarter, or year-over-year growth of 142.8% to 153.6%.
It also projected third-quarter total revenue to rise between roughly 94% to 107.9%.
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