XPeng's self-grown AI may be open to the public this year - Yicai

XPeng's self-grown AI may be open to the public this year - Yicai

XPeng, a leading electric vehicle (EV) manufacturer, recently unveiled its innovative AI Tech Tree and launched its flagship vehicle, the 2025 XPENG X9. This move underscores the company's commitment to technological advancements and strategic global growth. XPeng's focus on AI and charging technology aligns with its expansion into new markets like Poland, highlighting its ambitious global strategy despite broader market challenges [1].

The company reported a quarterly price increase of 21.47%, indicating strong sales performance and investor confidence. This growth is particularly notable given the broader market's decline due to trade tensions and tariffs. XPeng's robust performance is likely driven by its technological innovations, which could bolster long-term growth by capturing broader market appeal and increasing vehicle sales.

The recent unveiling of the AI Tech Tree and the XPENG X9 suggests a focus on technological advancement that may enhance vehicle capabilities. While these investments may pose short-term challenges, they align with XPeng's strategy to fortify its position in the global market, potentially enhancing future earnings and margin improvements.

Over the past year, XPeng's total shareholder return, including share price and dividends, surged significantly. Comparatively, XPeng outperformed both the US market (5.9% return) and the US Auto industry (46.4% return). The company's robust performance in recent months, including a quarterly share price increase, underscores investor optimism regarding its growth trajectory.

The consensus price target stands at $19.91, lower than XPeng's current share price of $22.64, suggesting potential overvaluation relative to analyst expectations. This discrepancy may reflect differing opinions on future profitability and revenue growth prospects, given the company's significant investments in AI and international expansion.

XPeng's future success will depend heavily on executing its plans effectively, balancing increased R&D and expansion expenditures with resultant revenue and earnings growth. Investors should evaluate XPeng's prospects by accessing their earnings growth report.

References:
[1] https://finance.yahoo.com/news/xpeng-nyse-xpev-unveils-innovative-172355407.html