Recently, the stock price of Xpeng Motors (XPEV.US) has continued to rise, with a cumulative increase of more than 80% since March 2025, and has repeatedly set new highs in the US and Hong Kong stock markets. Behind this rise, there is not only the boost in market confidence brought about by technological breakthroughs, but also the accelerated implementation of the globalization strategy, coupled with the support of sales growth and financial improvement, forming a multi-dimensional logic of rising.
Technological Breakthrough: Dual Leading in Intelligence and Robotics
Xpeng Motors' technological moat is being continuously broadened through autonomous driving, AI large models and robot research and development.
Iteration of intelligent driving technology
Xpeng's AI Dimensity 5.4.0 version released in the fourth quarter of 2024 demonstrates its leading position in the field of intelligent driving. This technology significantly improves decision-making capabilities under complex road conditions through multi-sensor fusion and deep learning algorithm optimization, becoming the core selling point of its vehicle competitiveness.
Humanoid robot innovation
Xpeng's self-developed humanoid robot "Iron" has recently attracted attention. Its patent for "leg structure and humanoid robot" has greatly improved dynamic stability by optimizing actuator design. This technology not only strengthens its layout in the field of intelligent hardware, but is also regarded by the market as an important fulcrum for future diversified income.
R&D investment and policy support
Chairman He Xiaopeng clearly stated that the company will firmly invest in core areas such as intelligent driving and AI large models. In addition, the "Government Work Report"'s encouraging policies for private capital have further strengthened the market's confidence in the long-term nature of its technology research and development.
Overseas expansion: globalization strategy is accelerating
Xpeng Motors' global layout is extending from Europe to emerging markets, opening up new space for sales growth.
Breakthrough in the European market
In March 2025, Xpeng G6 started pre-sale in the UK, priced at £39,990, becoming the first model for the right-hand drive market. Despite Europe's imposition of tariffs on Chinese electric vehicles, Xpeng still has strong competitiveness due to its cost control and technological advantages.
Market development in the Middle East and Africa
Through strategic cooperation with Ali & Sons, a UAE dealer, Xpeng officially entered the Middle East and Africa market. The demand for high-end electric vehicles in the region is growing rapidly and is expected to become a new growth pole10.
Capacity and channel construction
By the end of 2024, Xpeng's global store count has increased to 611, and its self-operated charging stations have reached 1,298. The improvement of its overseas infrastructure has provided a guarantee for its sales growth6.
Sales and finance: fundamentals continue to improve
Explosive growth in delivery volume
In February 2025, Xpeng delivered 30,453 new vehicles, a year-on-year surge of 570%, and exceeded 30,000 vehicles for four consecutive months. The new model MONA M03 has delivered more than 15,000 units for three consecutive months, and the cumulative delivery of P7+ has exceeded 30,000 units in three months since its launch, setting an industry record.
Financial indicators are improving
Gross profit margin increased: In the second quarter of 2024, the gross profit margin jumped from -3.9% to 14%, and the loss was significantly narrowed to US$1.28 billion (a year-on-year decrease of 54%).
Adequate cash flow: The company's current assets reached US$6.15 billion, working capital exceeded US$2 billion, and there was no financing pressure in the short term.
Market expectations are optimistic
Institutions such as JPMorgan Chase and UBS raised their target prices, and it is expected that its stock price will still have room for an increase of 30%-40%. Technical analysis shows that after the stock price breaks through the key resistance level, it is expected to challenge the Fibonacci retracement target of US$15.
Risks and challenges
Despite the positive outlook, Xiaopeng still needs to deal with the following challenges:
Intensified industry competition: Giants such as Tesla and BYD continue to exert pressure, and domestic new power brands are also accelerating technology iteration.
Policy uncertainty: Trade barriers in overseas markets may affect profit margins, such as European tariff adjustments.
Earnings inflection point has not yet arrived: Although losses have narrowed, net profit has not yet turned positive, and the scale effect needs to be further verified.
Conclusion
Xpeng Motors' stock price rise is the result of the resonance of technological breakthroughs, global expansion and fundamental improvements. Its innovations in the fields of intelligent driving and robotics, coupled with rapid penetration in overseas markets, lay the foundation for long-term growth. However, investors need to pay attention to industry competition and the rhythm of realizing the profit inflection point. If the company can continue to deliver on its technology landing and sales targets, the stock price is expected to further challenge historical highs
*Disclaimer: The content of this article is for learning only, does not represent the official position of VSTAR, and cannot be used as investment advice.
