XPeng (NYSE:XPEV) Reports 115%-131% Q2 Revenue Growth Guidance, Q1 Losses Narrow

XPeng (NYSE:XPEV) recently issued robust revenue guidance for Q2 2025, forecasting significant growth, coinciding with an earnings announcement showing strong revenue increases and reduced losses. This aligns with its share price rise of 9% over the last quarter. XPeng's vehicle delivery surge by over 300% year-over-year and product launches, like the next-gen P7, likely bolstered investor confidence, contributing to the share price appreciation. While broader markets experienced mixed results, with the S&P 500 flat in recent trading and Treasury yields rising, XPeng's solid performance counters these trends, reflecting specific investor enthusiasm for the company's achievements.

Buy, Hold or Sell XPeng? View our complete analysis and fair value estimate and you decide.

We've found 14 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

The recent revenue guidance and Q2 2025 earnings of XPeng suggest a positive trajectory for the company, focusing on robust growth and reduced losses. This aligns well with their intensified investments in AI and automotive expansions, which, while putting short-term pressure on margins due to heightened R&D expenses, promise potential revenue enhancements. Over the past year, XPeng has achieved an impressive total shareholder return of 124.52%, highlighting substantial recovery and investor confidence, even amidst a challenging industry backdrop.

Over the last year, XPeng has outperformed the broader market, as evidenced by its significant share price increase, contrasting the flat performance of indices like the S&P 500. Despite this, the company's current share price of US$22.64 surpasses the analyst consensus price target of US$19.91, indicating an overvaluation based on expected future earnings and revenue growth assumptions. The news of strong vehicle deliveries and burgeoning AI prowess may bolster revenue and earnings forecasts, yet the anticipated 13.7% decline to the fair value implies a cautious market sentiment towards XPeng's immediate valuation.

Take a closer look at XPeng's potential here in our financial health report.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com