Shanghai, Nov 17, 2025 – Chinese electric vehicle (EV) maker XPeng (9868.HK) projected fourth-quarter revenue below market expectations, citing fierce competition and a prolonged price war in China, the world’s largest auto market.

The announcement sent XPeng’s U.S.-listed shares down nearly 8% in early trading, despite the stock having more than doubled in value earlier this year.

Record Deliveries, But Margin Pressure Persists

XPeng and competitor NIO (9866.HK) posted record vehicle deliveries in October, while Tesla’s China sales fell to a three-year low, highlighting the uneven impact of the ongoing price war.

The automaker expects Q4 revenue between 21.5 billion yuan ($3.03 billion) and 23 billion yuan, below the average analyst forecast of 26 billion yuan, according to LSEG data.

“Since the launch of the mid-to-low-end Mona M03 last year, combined with reduced investment in intelligent driving, XPeng has lost its brand appeal in models priced above 200,000 yuan,” said Rosalie Chen, analyst at Third Bridge.

The Mona M03, developed with ride-hailing giant DiDi, represents XPeng’s push into the mass-market EV segment, but the shift has created brand positioning challenges for higher-end models.

Long-Term Innovation Adds Cost Pressure

At its recent AI Day event, XPeng showcased future mobility concepts, including consumer-facing flying cars and humanoid robots for factory and warehouse applications. While these projects may position the company for long-term growth, they require substantial R&D investment, which could further pressure near-term earnings.

For the third quarter, XPeng reported:

• Revenue: 20.38 billion yuan, in line with expectations
• Vehicle deliveries: up 149.3% year-on-year
• Net loss: narrowed to 380.9 million yuan from 1.81 billion yuan a year earlier

The company expects full-year vehicle deliveries to grow 36.6% to 44.3% year-on-year, signaling that demand remains strong despite market headwinds.

China’s EV market remains intensely competitive, with domestic brands like XPeng and NIO battling Tesla and each other, particularly in the affordable and mid-range EV segments.