Xpeng’s Next-Gen P7: A Design and AI Masterstroke to Dominate the EV Landscape

The electric vehicle (EV) market is in the throes of a revolution, and Xpeng is positioning itself to lead it. With the upcoming launch of its next-gen P7 sedan—codenamed E29—Xpeng is set to redefine the premium EV segment through a potent mix of Rafik Ferrag’s visionary design, cutting-edge AI-driven technology, and institutional investor confidence. This trifecta of innovation and capital backing makes XPEV a compelling buy ahead of its Guangzhou Auto Show debut in late 2025.

AI Integration: The Turing Chip’s Quiet Revolution

Xpeng’s next-gen P7 isn’t just an evolution—it’s a technological leap. At its core is the Xmart OS 2.0 software, powered by Xpeng’s proprietary Turing AI chip. Unlike competitors like Tesla or BYD, which rely on lidar for advanced driver assistance systems (ADAS), the P7 uses vision-based AI to achieve similar precision. This approach reduces costs and complexity while enhancing real-world reliability.

The Turing chip’s capabilities are staggering: real-time object recognition, predictive route optimization, and seamless integration with augmented reality (AR) head-up displays. Analysts at Citigroup note that this system could give Xpeng a 12–15% cost advantage over lidar-dependent rivals, while offering superior scalability as AI algorithms improve.

Design Differentiation: Ferrag’s Masterpiece

The P7’s design, helmed by chief designer Rafik Ferrag, is nothing short of a masterpiece. Official images released on May 15, 2025, reveal a fastback profile, retractable rear spoiler, and aerodynamic lines that reduce drag by 5% compared to the P7i. This isn’t just about aesthetics—it’s about performance.

The car’s Kunpeng platform supports an 800-volt architecture and 5C ultra-fast charging, enabling a 700+ km range on a single charge. Meanwhile, interior spy shots show a minimalist cockpit with a 15-inch central touchscreen and optional purple leather upholstery—details that signal Xpeng’s ambition to rival Tesla’s Model 3 in both style and substance.

Global Expansion and Institutional Backing: A Bullish Signal

Xpeng isn’t just targeting China. With operations in over 30 countries and plans to expand into Australia and Europe, the P7’s liftback body style (blending sedan and hatchback traits) positions it as a global hit. CEO Jason Clarke of distributor TrueEV has already hinted at an Australian launch, underscoring Xpeng’s confidence in its design and tech.

But the real catalyst lies in institutional buying. TMT General Partner Ltd, a major stakeholder, increased its XPEV holdings by 233% in value between Q4 2023 and March 2025, making it the second-largest institutional holder. Even more telling: Alibaba Group and Morgan Stanley have also ramped up their stakes, signaling that XPEV’s valuation—currently trading at a P/E ratio of 12x forward earnings—is deeply undervalued relative to its growth trajectory.

Why Buy Now?

• Catalyst Timing: The P7’s Guangzhou Auto Show debut in late 2025 will be a market-moving event, with spec reveals and pricing likely to spark demand.
• Undervalued Multiples: At 12x forward earnings, XPEV trades at a 40% discount to Tesla’s 20x P/E and a 25% discount to BYD’s 16x P/E, despite its superior AI tech and design.
• Analyst Consensus: 8 of 12 analysts rate XPEV a “Buy,” with a 12-month price target of $25–30, implying 30–50% upside from current levels.

Conclusion: A Low-Risk, High-Reward Opportunity

Xpeng’s next-gen P7 isn’t just a car—it’s a strategic weapon in the EV arms race. By marrying Ferrag’s design vision with AI-driven innovation and leveraging institutional confidence, XPEV is poised to carve out a dominant niche in both domestic and global markets. With a valuation that lags its growth potential and a blockbuster product launch on the horizon, now is the time to act.

Don’t miss the window: The P7’s launch will redefine expectations. Secure your position before the market catches on.

Investors: XPEV is a buy at current levels. Act now.