Xpeng Inc. ADR (XPEV), the Chinese manufacturer of smart EVs, heads into its next earnings report with clear growth signs and a sharp rise in its stock price. The share price is up more than 110% this year, and that move now sets a tighter bar for what Wall Street hopes to see on revenue, margin, and EPS.
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Growth Trends and Sales Signals
Xpeng has shown solid gains in key parts of its business, which helps shape expectations. The last quarter saw deliveries of 103,181 units, representing a 242% year-over-year increase. Revenue reached RMB 18.27 billion for that same quarter, and gross margin rose to 17.3%. Free cash flow exceeded RMB 2 billion, and total cash stood at above RMB 47.5 billion.
Additionally, new models experienced healthy demand. The G7, built with the in-house Turing AI chip, became a top seller, while the P7 gained strong pre-sale orders.
Street View and Cost Pressure
Ahead of its Q3 report, Wall Street projects an EPS of negative $0.05 for the new quarter, compared with negative $0.27 for the same period last year. This view shows that analysts see a path to smaller losses, yet they still flag cost trends as a key point to watch. The last report showed a net loss of RMB 0.48 billion, which was better than the prior year but still tied to higher research, development, and sales costs.
Price pressure in the EV market also stayed strong, and that trend could shape the tone of guidance. Even so, analysts hold a moderate buy call.
What Comes Next
As Xpeng moves toward its earnings date of November 17, the focus may rest on the pace of unit growth, the shape of margin, and the progress of cost control. On the delivery front, the company forecast deliveries of 113,000 to 118,000 for the next quarter and revenue of RMB 19.6 billion to RMB 21 billion.
If Xpeng stays on track with those targets, the street may keep its view steady. The company enters this report with clear gains, clear cost needs, and close attention from the market.
Is XPEV a Good Stock to Buy?
Ahead of earnings, Xpeng Inc. boasts a Moderate Buy consensus rating. The average XPEV stock price target is $28.27, implying a 13.03% upside from the current price.
