Xpeng projects strong delivery numbers amid rising EV competition

In China, the electric vehicle maker Xpeng has seen a significant rise in its shares following the announcement of its first quarter earnings, which exceeded market expectations. The company reported a revenue of 15.81 billion Chinese yuan, marking a 141.5% increase year-on-year, while its net loss narrowed to 660 million yuan from a notable loss of 1.37 billion yuan the previous year. Xpeng attributes this improved performance to robust sales, having delivered 94,008 vehicles in the first quarter of 2025, which was more than four times its sales volume from the same quarter last year. Looking ahead, Xpeng has expressed optimism for the second quarter, forecasting revenue between 17.5 billion and 18.7 billion yuan. This projection is above consensus estimates and indicates a continuing upward trend in revenue fueled by a growing delivery volume. The automaker also expects to deliver between 102,000 and 108,000 electric vehicles during this period, which would represent a year-over-year increase of approximately 237.7% to 257.5%. These robust forecasts have helped lift investor sentiment and support the company's share price rally, contributing to a year-to-date increase of 66%. However, despite the positive developments, Xpeng operates within a hypercompetitive and challenging environment. The company has struggled with profitability amid increased competition and a sluggish demand for electric vehicles in its home market. Analysts remain cautiously optimistic and expect Xpeng to achieve profitability in the fourth quarter of 2025. Furthermore, the automaker is working diligently on new models, including plans to introduce Level 3 autonomous driving features by the end of the year, a significant improvement over current systems. Despite the challenges posed by new entrants and established competitors within China's electric vehicle sector, Xpeng's strategic product offerings and substantial delivery growth suggest that the firm is on a path of recovery. Xpeng's commitment to innovation, alongside sustained consumer interest in electric vehicles, may serve to bolster its position in the market moving forward.