XPeng stock hasn't performed well recently. Over the last year, it has fallen nearly 20%, underperforming China’s Hang Seng index* by a wide margin. However, as a manufacturer of electric vehicles (EVs), autonomous vehicles, and humanoid robots, XPeng continues to have a lot of growth potential. And Wall Street remains bullish on the stock, with the average analyst price target sitting almost 50% above the current share price.
Strong Q4 Earnings
On March 20, XPeng posted its earnings for the fourth quarter1 of 2025. And the numbers were strong.
For the quarter, total revenue amounted to RMB 22.25 billion (USD $3.18 billion), up 38.2% year over year. Meanwhile, non-GAAP net profit was RMB 0.51 billion (USD $0.07 billion), compared with a loss of RMB 1.39 billion for the same period of 2024.
In terms of delivery numbers, Q4 deliveries were 116,248 while full-year deliveries were 429,445. These numbers were up 27% and 126% year over year respectively.
For the year, revenue came in at RMB 76.72 billion, an 87.7% increase year over year. Full-year gross margin was 18.9%, up 4.6 percentage points year over year.
It’s worth pointing out that guidance for Q1 was weak due to the fact that the Chinese government has reined in EV subsidies. For the quarter, deliveries are expected to be between 61,000 and 66,000, representing a year-over-year decrease of approximately 30% to 35%.
However, to counter domestic EV weakness, XPeng is expanding aggressively internationally. It’s also focusing more on Physical AI in an effort to be a global leader in the AI revolution.
XPeng’s Autonomous Vehicle Strategy
A cornerstone of XPeng’s physical AI strategy is autonomous vehicles. Here, it has developed the VLA 2.0 intelligent driving system – a next-generation Physical AI model trained on 100 million2 video clips.
In early March 2026, the VLA 2.0 successfully passed the physical Turing test for autonomous driving. According to the company, passengers can hardly distinguish if it's a human or AI who's driving the car.
Looking ahead, the company plans to begin global delivery of VLA 2.0 in 2027. Volkswagen is the inaugural launch partner for the Chinese market.
Note that in Q2 2026, XPeng will start pre-orders of its first flagship six-seat full-size SUV, the XPeng GX. This will be its first model designed to support L4-level hardware and software capabilities.
Humanoid Robot Production in 2026
Looking beyond autonomous vehicles, XPeng is also planning to become a major player in the humanoid robotics space. Here, it has developed an advanced humanoid called IRON.
Powered by three Turing AI chips (designed for level 4 autonomous driving), the company’s VLA 2.0 technology stack, and its fourth-generation motion control system, it offers industry-leading computing power, agility, and motion control. In terms of production, the company has already begun construction of its humanoid mass production base in Guangzhou, and it is targeting production of over 1,000 units per month by the end of the year.
Price Targets for XPeng Stock
Turning to analysts’ price targets3 for XPEV stock, the average price target is currently $26.07. That is approximately 49% above the current stock price. Some firms, such as Morgan Stanley and JP Morgan, have targets that are much higher than this, however (both have forecasts of $34). Given these bullish price targets, XPeng could be a stock to watch in 2026.
Footnotes:
*The Hang Seng Index is a market-capitalization-weighted stock index that tracks the performance of the largest and most liquid companies listed on the Hong Kong Stock Exchange, and is widely used as a benchmark for the overall health and direction of Hong Kong’s equity market.
1Xpeng, XPENG Reports Fourth Quarter and Fiscal Year 2025 Unaudited Financial Results, as of March 20, 2026
2Xpeng, XPENG SHARES ACHIEVEMENTS IN PHYSICAL AI EMERGENCE: UNVEILS XPENG VLA 2.0, ROBOTAXI, NEXT-GEN IRON, AND FLYING CAR, as of November 5, 2025
3Investing.com, Xpeng Inc (XPEV), as of March 23, 2026
