Xpeng expects its Q3 revenue to double as it projects higher EV deliveries, despite a challenging economic environment.

The company said it forecasts revenue between 19.6 billion yuan (US$2.7 billion) and 21 billion yuan, up 94% to 107.9% year-on-year.

Xpeng also expects to deliver between 113,000 and 118,000 vehicles in Q3, representing a year-on-year rise of up to 153.6%.

Analysts surveyed by LSEG expect Q3 revenue of 20.8 billion yuan.

For Q2, Xpeng reported revenue of 18.3 billion yuan, slightly below analyst estimates.

The company has seen demand for its EVs, supported by government incentives in China.

Xpeng is also developing its own AI chip for self-driving features as competition intensifies in China’s crowded EV market.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Xpeng’s growth defies industry-wide price war pressures

Xpeng’s forecast to double quarterly revenue comes at a time when Chinese authorities are actively warning EV makers to stop aggressive price-cutting that threatens economic stability2.

The company’s projected 94% to 108% revenue growth stands in stark contrast to an industry where manufacturers have been slashing prices by nearly 20%, with some selling vehicles at or below cost2.

This suggests Xpeng has successfully differentiated itself from competitors engaged in unsustainable price wars that harm overall economic growth2.

While companies like BYD have driven prices down with models like the Seagull at 55,800 yuan, Xpeng appears to have avoided competing primarily on price2.

The company’s focus on developing its proprietary Turing chip for autonomous driving capabilities may be key to maintaining pricing power in a crowded market1.

2️⃣ Survivor emerges from massive startup consolidation

Recent Xpeng developments