Can XPeng (XPEV) Turn a Malaysian EV Hub into a Lasting ASEAN Scale Advantage?

• XPENG has entered a partnership with EP Manufacturing Berhad to develop a localized EV production hub in Malacca, Malaysia, with mass production targeted for 2026 as part of a broader Europe and Asia-Pacific ecosystem build-out.
• By combining XPENG’s smart-EV platform with EPMB’s local manufacturing expertise, the project is set to embed the brand more deeply into Malaysian and ASEAN supply chains while supporting the country’s green industrial ambitions.
• We’ll now examine how building Malaysian production capacity aimed at ASEAN consumers could reshape XPENG’s international expansion-focused investment narrative.

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XPeng Investment Narrative Recap

To own XPeng, you need to believe it can turn fast-growing smart EV and software capabilities into sustainable profitability while expanding beyond China. The Malaysia partnership reinforces the international expansion catalyst by deepening XPeng’s ASEAN footprint, but it does not directly resolve the most immediate risk around persistent net losses and high capital needs, which still hinges on execution, pricing discipline, and cost control across existing operations.

Among recent developments, the permit to test Level 3 autonomous driving in Guangzhou and plans to open source the VLA 2.0 system stand out in the context of XPeng’s autonomy and software catalyst. These announcements speak directly to the thesis that proprietary AI and advanced driver assistance could support higher margin software revenue, which may help offset pressure from EV price competition if the technology can differentiate XPeng’s vehicles in crowded markets.

Yet even as XPeng accelerates overseas production, investors should be aware that intense price competition in its core Chinese EV market could still...

Read the full narrative on XPeng (it's free!)

XPeng's narrative projects CN¥137.4 billion revenue and CN¥6.4 billion earnings by 2028. This requires 31.6% yearly revenue growth and a CN¥10.7 billion earnings increase from CN¥-4.3 billion today.

Uncover how XPeng's forecasts yield a $28.24 fair value, a 56% upside to its current price.

Exploring Other Perspectives

Sixteen XPeng fair value estimates from the Simply Wall St Community span roughly US$9.86 to US$40.51 per share, underlining how far apart individual views can be. You can weigh these against the upside investors see in XPeng’s global build out and autonomy push, while keeping an eye on how ongoing net losses might affect the company’s ability to sustain that expansion.

Explore 16 other fair value estimates on XPeng - why the stock might be worth over 2x more than the current price!

Build Your Own XPeng Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your XPeng research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free XPeng research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate XPeng's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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