Key Stats for Xpeng Stock
- Price Change for $XPEV stock: -10.3%
- $XPEV Share Price as of Nov. 17: $22.43
- 52-Week High: $28.24
- $XPEV Stock Price Target: $28.18
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What Happened?
Xpeng (XPEV) stock dropped over 10% on Monday after the Chinese electric vehicle maker reported mixed third-quarter results. While the company crushed earnings expectations, a disappointing revenue forecast for the fourth quarter spooked investors.
The company posted a loss of just $0.02 per share, beating Wall Street’s expectation for a $0.07 loss. Revenue climbed 101.8% year-over-year to $2.87 billion, which was in line with consensus estimates.
Vehicle deliveries told an impressive growth story as Xpeng delivered 116,007 vehicles during the quarter, up 149.3% compared to the same period last year. Vehicle sales generated $2.53 billion, jumping 105.3% from a year earlier.
Gross margin hit 20.1%, up from 15.3% a year ago and 17.3% last quarter. Vehicle margin improved to 13.1% from 8.6% in the prior year, though it dipped slightly from Q2’s 14.3%. The company attributed the sequential decline to promotional discounts during product transitions.
CEO He Xiaopeng called it a record-breaking quarter. “Vehicle deliveries, revenue, gross margin and cash on hand all reached new highs,” he said. The company’s cash position remained healthy at $6.77 billion, including equivalents, restricted cash, short-term investments and deposits.
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What the Market Is Telling Us About Xpeng Stock
The market’s adverse reaction to Xpeng stock centers on the weak fourth-quarter outlook. Management expects deliveries to range between 125,000 and 132,000 vehicles, representing annual growth of 36.6% to 44.3%. While that sounds strong, it implies sequential growth of only 8% to 14% from the record performance in Q3.
More concerning, revenue guidance came in at $3.01 billion to $3.22 billion, compared to the analyst estimate $3.51 billion. The roughly 15% gap below consensus likely triggered the stock decline, raising questions about near-term demand or pricing pressure.
The conservative guidance seems odd given Xpeng’s recent momentum. The company has just launched presales for the X9 Super Extended-Range EV, which has already generated preorders nearly three times higher than those of the previous X9 model. Notably, management expects to hit a new delivery record in December.
Xpeng stock may also be facing investor concerns about rising costs. R&D expenses climbed 48.7% year-over-year to $340 million as the company invests heavily in physical AI, autonomous driving, and humanoid robots.
Selling and administrative expenses jumped 52.6% to $349 million, driven by higher commissions and marketing costs.
The CEO outlined an ambitious vision that extends beyond cars. He announced plans to launch three Robotaxi models in 2026, achieve mass production of the IRON humanoid robot by the end of 2026, and target 1 million robot sales annually by 2030.
Xpeng will also introduce seven new vehicle models with extended-range technology next year.
These future projects require significant capital, and the EV maker remains unprofitable. Xpeng reported a net loss of $53 million in Q3, though that improved from $253 million a year earlier. The company aims to achieve breakeven in the fourth quarter.
For now, Xpeng stock appears caught between impressive current results and cautious near-term guidance.
The 149.3% delivery growth and 20.1% margin expansion demonstrate operational progress. But the conservative Q4 forecast suggests management sees potential headwinds, whether from competition, pricing pressure, or economic uncertainty in China.
With $6.77 billion in cash and a clear technology roadmap, Xpeng has the resources to execute its long-term vision. Whether investors reward that vision or punish the near-term guidance miss remains to be seen.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
