Post by : Badri Ariffin

Chinese electric vehicle maker XPeng has sounded a note of caution for investors, forecasting fourth-quarter revenue below market expectations as fierce competition and a prolonged price war shake China’s EV market.

Despite posting record deliveries in October alongside rival NIO, XPeng anticipates revenue between 21.5 billion yuan ($3.03 billion) and 23 billion yuan, falling short of analysts’ average forecast of 26 billion yuan. U.S.-listed XPeng shares dipped nearly 3% in premarket trading, reflecting investor concern.

The company’s cautious outlook contrasts sharply with Tesla’s declining sales in China, which have fallen to a three-year low, highlighting the uneven impact of the price war that has cut into profits across the crowded EV sector.

Industry analysts point to XPeng’s new mass-market model, the Mona M03, as a double-edged sword. Launched last year in collaboration with ride-hailing giant DiDi, the model targets more affordable segments but has reportedly diluted XPeng’s appeal in higher-priced vehicles above 200,000 yuan.

XPeng is also betting on ambitious long-term projects, including “flying car” concepts and humanoid robots for industrial use. While these innovations showcase the company’s forward-looking vision, they require heavy research and development spending, adding near-term financial pressure.

The company’s third-quarter results, however, painted a brighter picture. Revenue rose to 20.38 billion yuan, in line with expectations, supported by a 149% year-on-year surge in vehicle deliveries. XPeng projects fourth-quarter deliveries to increase between 36.6% and 44.3% compared with last year. Net losses narrowed significantly, falling to 380.9 million yuan from 1.81 billion yuan in the same quarter last year, indicating some operational resilience amid mounting competition.

#Business News #Economic