Xpeng Earnings: Wall Street Braces for Delivery Surge & Shrinking Losses—Can the EV Underdog Deliver?
Xpeng's Q3 earnings drop November 16—and all eyes are on whether the Chinese EV maker can turn its delivery momentum into actual profits.
The Bull Case: Record deliveries suggest demand is heating up despite Tesla's dominance. If losses narrow faster than expected, shorts get squeezed.
The Skeptic's Take: Another 'growth over profits' story from a sector that burns cash faster than a meme coin trader's margin account.
Wall Street wants proof Xpeng can scale without drowning in red ink. Time to show the math.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
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.
