XPeng Inc. (XPEV) Shares Surge 20% on Optimistic Q3 Revenue Growth Expectations

XPeng Inc. (XPEV) shares rose 20.56% last week as investors reacted to the company's Q3 revenue growth expectations, which are projected to increase by 94-107.9% YoY to between RMB19.6-21 bln. The electric vehicle maker also expects to deliver 113,000-118,000 vehicles, a YoY growth of 142.8-153.6%. This follows Q2 earnings that saw a 62.5% narrowing of its net loss attributable to shareholders. HSBC has upgraded XPEV to "buy" with a price target of $29.6, representing a 24.6% upside from the latest closing price.

XPeng Inc. (XPEV) shares rose by 20.56% last week as investors reacted to the company's Q3 revenue growth expectations. The electric vehicle maker projected a 94-107.9% year-over-year (YoY) increase in revenue, targeting between RMB19.6 billion and RMB21 billion for the third quarter. Additionally, XPeng expects to deliver between 113,000 and 118,000 vehicles, representing a YoY growth of 142.8-153.6% [1].

These projections follow XPeng's stellar Q2 earnings performance. The company narrowed its net loss attributable to shareholders by 62.5% to RMB480 million, compared to RMB1.28 billion in the same period last year. This improvement was driven by a 147% expansion in vehicle sales, reaching RMB16.88 billion compared to RMB6.82 billion in the same period last year [1].

HSBC recently upgraded XPeng Inc. (XPEV) to a "buy" recommendation with a new price target of $29.6, representing a 24.6% upside from the latest closing price. The investment firm cited the company's optimistic growth outlook for the third quarter and a bullish rating for its stock [1].

Analysts have set a one-year average price target of $24.31, implying a potential 22.15% upside from the current market price of $19.90. GuruFocus estimates suggest a substantial 63.82% upside, with a one-year GF Value of $32.60 [2]. The consensus recommendation among 26 brokerage firms aligns with an "Outperform" status, reflecting a positive sentiment around XPeng's market performance and future potential [2].

XPeng Inc. has been able to drum up demand for its diverse lineup of electric cars, helped by government stimuli to boost customer spending in a faltering economy. The company is also working on integrating artificial intelligence into its self-driving software and expanding technology tie-ups with other automakers [2].

For the second quarter, XPeng reported revenue of RMB18.27 billion, slightly below estimates of RMB18.52 billion. The company forecast third-quarter revenue between RMB19.6 billion and RMB21 billion, an increase of 94% to 107.9% from a year ago. Analysts on average expect revenue of RMB20.81 billion [2].

XPeng's in-house Turing chip, once mass-produced, could be a pivotal step in the company's intelligent driving ambitions. The chip is designed specifically for XPeng's own requirements, offering targeted optimization over generic industry solutions [2].

The company has received mixed ratings from analysts, with a target price ranging from $19.00 to $28.00, indicating a general consensus of a "Moderate Buy" based on recent assessments. Central Asset Investments & Management Holdings HK Ltd boosted its stake in XPeng Inc. Sponsored ADR (NYSE:XPEV) by 111.9% in the first quarter [3].

Institutional investors and analysts have shown increased interest in XPeng Inc, with several brokerages recently commenting on the stock. Morgan Stanley set a $28.00 target price on shares of XPeng and gave the stock an "overweight" rating [3].

Overall, XPeng Inc's strong financial performance and optimistic outlook for the third quarter present an interesting opportunity for potential investors. The company's focus on innovation and expansion in the EV market, coupled with government support, positions it well for future growth.

References:
[1] https://finance.yahoo.com/news/xpeng-xpev-climbs-20-whopping-121455269.html
[2] https://www.ainvest.com/news/xpeng-q3-outlook-set-revenue-profit-surpass-2508/
[3] https://www.marketbeat.com/instant-alerts/filing-xpeng-inc-sponsored-adr-nysexpev-is-central-asset-investments-management-holdings-hk-ltds-largest-position-2025-08-12/