By XPeng stock price pulled back on Monday as investors focused on its upcoming financial results on Tuesday. XPEV dropped to a low of $23.75 on Monday, down by over 12% from its highest level this month. It is still one of the best-performing companies after rising by almost 270% from its lowest level in 2024.
XPeng earnings to demonstrate growth
There have been concerned about the electric vehicle industry in the past few years. A key issue is the expectation that the industry will continue slowing down since most customers are opting for internal combustion engine (ICE) vehicles.
Recent data from China, however, show that the industry is still seeing strong double-digit growth trajectory. The leading EV companies are seeing double-digit vehicle deliveries each month.
XPeng is one of those firms seeing strong demand this year. The most recent delivery data showed that it delivered 30,453 vehicles in February, a 570% annual increase. This growth was driven by Mona whose vehicle deliveries rose to over 15,000 for three consecutive months.
XPeng delivered 91,507 vehicles in the fourth quarter, a 52% increase from what it sold in the same period a year earlier. This growth brought the total vehicles delivered in 2024 to over 190,068, a 34% annual increase.
Therefore, analysts anticipate that XPeng’s quarterly revenue rose by 23.77% in the fourth quarter to 16.15 billion CNY. The total revenue for the year will grow by 35% to over 41.48 billion CNY.
Analysts are also optimistic that its annual revenue will get to 75 billion CNY in 2026. These are all strong numbers considering that XPeng is in a highly competitive industry, where Tesla, the gold standard is slowing down. XPeng is also competing with other companies like Nio, BYD, and Li Auto.
XPeng is also investing in other areas as it seeks to differentiate its business from other EV companies. For example, the management has said that it will enter the robotics industry by spending over $13.8 billion on humanoid robots.
The company has also moved into the fast-growing flying car industry. It hopes that it will enter have mass production of these vehicles by 2026.
Most importantly, XPeng’s bottomline is set to continue improving as the management eyes profitability happening in the next few years. The average estimate is that the loss per share in 2024 will be 5.94 CNY, down from 10.85 CNY a year earlier. It will then lose 3 cents a share in 2025 next year.
Read more: Here’s why the XPeng stock price may surge 140% in 2025
XPeng stock price analysis
The daily chart shows that the XPEV share price has been in a strong bull run in the past few months. It has now retreated and retested the crucial support level at $23.55, the upper side of the cup and handle pattern. This cup has a depth of about 72%. A break and retest is one of the most bullish patterns in the market.
Measuring the same distance from the upper side of the cup means that the XPeng stock price will rebound and hit the psychological point at $40.
The alternative scenario is where the XPeng stock price consolidates near the upper side of the cup for a while as it forms the handle section.
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