Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 22 Aug, 25 | XPEV | Buy | USD 22.75 | USD 24.5 | USD 26.55 | 5 days | Closed |
7.69%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
XPeng Inc. designs, develops, manufactures, and markets smart electric vehicles (EVs) in the People's Republic of China. It offers SUVs under the G3, G3i, and G9 names; four-door sports sedans under the P7 and P7i names; and family sedans under the P5 name. The company also provides sales contracts, super charging, maintenance, technical support, auto financing, insurance, technology support, ride-hailing, automotive loan referral, and other services, as well as vehicle leasing and insurance agency services. In addition, it offers advanced driver-assistance system technology and in-car intelligent operating system; and vehicle systems comprising powertrains, and the electrical and electronic architecture. XPeng Inc. was founded in 2015 and is headquartered in Guangzhou, the People's Republic of China.
Significant Margin Improvement: Vehicle margin improved by 7.9 percentage points, climbing from 6.4% in Q2 2024 to 14.3% in Q2 2025, indicating better cost efficiency and stronger product mix
Record Surge in Deliveries: Vehicle deliveries increased 241.6% year-over-year, rising from 30,207 units in Q2 2024 to 103,181 units in Q2 2025, reflecting strong demand and expanded sales capacity
Decline in Other Income: Other income dropped 14.9% year-over-year, from RMB0.28 billion in Q2 2024 to RMB0.24 billion in Q2 2025, largely due to reduced government subsidies
Rising R&D Expenditures: Research and development expenses surged 50.4% year-over-year, from RMB1.47 billion in Q2 2024 to RMB2.21 billion in Q2 2025, pressuring short-term profitability
XPeng’s rapid expansion strategy, while driving scale, exposes the company to risks of sustained cash burn, rising R&D and marketing expenses, and heightened exposure to intense price competition in China’s EV market
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 22.75 | 20.33 | 24.5 | 26.55 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Growth in Deliveries and Sales: XPeng Inc. reported a record-breaking performance in the second quarter of 2025, with total deliveries reaching 103,181 vehicles, marking a 241.6% increase compared to 30,207 units in the same quarter of 2024. This significant growth highlights the company’s expanding customer base and strengthening market presence, supported by its enlarged physical sales network of 677 stores across 224 cities and 2,348 self-operated charging stations nationwide.
Revenue Expansion and Improved Margins: Total revenues for Q2 2025 stood at RMB18.27 billion (USD 2.55 billion), representing a robust 125.3% year-over-year increase and a 15.6% sequential rise. Revenues from vehicle sales contributed RMB16.88 billion (USD 2.36 billion), reflecting a 147.6% surge compared to the same quarter of 2024. XPeng’s gross margin improved to 17.3% from 14.0% a year earlier, while vehicle margin climbed to 14.3%, up significantly from 6.4% in Q2 2024.
Reduced Losses and Improving Profitability Trends: Despite aggressive growth investments, XPeng successfully narrowed its net loss to RMB0.48 billion (USD 0.07 billion) in Q2 2025, a 62.8% reduction from RMB1.28 billion in Q2 2024. On a non-GAAP basis, the net loss further improved to RMB0.39 billion compared with RMB1.22 billion a year earlier. The company’s ability to control costs while scaling volumes reflects an improving trajectory toward sustainable profitability.
Ongoing Investment in Innovation and R&D: Research and development expenses rose to RMB2.21 billion in Q2 2025, up 50.4% year-over-year, underscoring XPeng’s commitment to advancing smart EV technology and broadening its product portfolio. This investment supports next-generation electrification and autonomous driving capabilities, enabling the company to strengthen its competitive edge in an intensely contested industry.
Operational Scale and Infrastructure Expansion: XPeng’s operational reach continues to expand, with its sales and charging infrastructure growing alongside surging demand. As of June 30, 2025, the company operated 677 sales outlets and 2,348 charging stations, including 1,304 ultra-fast charging stations. These investments in infrastructure not only enhance customer experience but also reinforce brand loyalty, a key factor in sustaining long-term growth.
Strategic Developments and Collaborations: During Q2 2025, XPeng launched the G7, a smart electric family SUV, which began deliveries in July. Additionally, XPeng deepened its strategic partnership with Volkswagen Group through an expanded agreement on Electrical/Electronic architecture collaboration. Such partnerships strengthen XPeng’s technology ecosystem and open pathways for broader global opportunities.
Outlook for Q3 2025: For the third quarter of 2025, XPeng projects deliveries between 113,000 and 118,000 units, representing a year-over-year increase of approximately 143% to 154%. Revenues are expected to range between RMB19.6 billion and RMB21.0 billion, reflecting growth of 94% to 108% compared to Q3 2024. The company emphasized its commitment to balancing scale growth with improved profitability in an industry facing intense price competition.
Technical Commentary: XPEV's stock price has stabilised at important support levels and is gradually trending higher, forming a swing high on the daily chart and indicating the potential for further upward movement in the short term. The 14-period RSI is climbing above the midpoint, reflecting growing buying momentum and reinforcing a bullish outlook. Moreover, the stock is trading above its 21-period moving average, which adds further confirmation to the positive sentiment. Overall, these technical indicators suggest a higher likelihood of continued gains, provided the price stays above these key support levels.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to XPeng, Inc. (NYSE: XPEV) at its close market price of USD 22.75 as of Aug 21, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Cyclical Industry: Auto Manufacturers
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| XPEV Xpeng Inc |
0.54 2.96% | 18.62 | - | - | 0.38 | 3.07 | 2.43 | -0.7469 |
| TSLA Tesla Inc |
16.25 3.48% | 483.51 | 45.91 | 67.57 | 5.67 | 8.35 | 12.42 | 58.23 |
| TOYOF Toyota Motor Corp |
0.20 0.93% | 21.70 | 8.97 | 9.44 | 0.0059 | 1.11 | 0.0097 | 0.05 |
| TM Toyota Motor Corporation ADR |
1.80 0.84% | 216.04 | 8.87 | 9.34 | 0.0052 | 1.07 | 1.27 | 6.98 |
| BYDDY BYD Co Ltd ADR |
-0.01 0.08% | 12.02 | 22.64 | 15.60 | 0.17 | 4.62 | 1.08 | 16.52 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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