XPeng Inc. (09868.HK): Strategic AI Transformation and Financial Turnaround Analysis

XPeng Inc. (09868.HK) is a leading Chinese NEV manufacturer focusing on intelligent electric vehicles (EVs) with core competencies in autonomous driving and smart cockpit systems. Its key products include the P7, P5, and G9 models [0]. The stock has shown significant volatility over the past 52 weeks, ranging from 11.14 to 28.24 HKD, with a current price around 21 HKD and a predicted target price of 28.27 HKD [0].

XPeng has undergone a strategic shift from a traditional EV maker to a diversified AI application company, building a unique competitive barrier through its “physical AI” strategy [0]. This transformation encompasses expansion into AI-driven technologies beyond EVs, including autonomous driving and humanoid robotics.

The company reported strong Q3 2025 financial results:

• Revenue doubled by 101.8% to 203.8 billion RMB [0,6,7].
• Net loss narrowed by 80% to 3.8 billion RMB [0,6,7].
• Comprehensive gross margin exceeded 20% for the first time [0,6].

XPeng has achieved notable tech breakthroughs:

1. AI Chip
   : Its self-developed Turing AI chip secured a定点 from Volkswagen [0].
2. Autonomous Driving
   : The VLA 2.0 system supports L3-level autonomous driving functions [0,9].
3. Humanoid Robot
   : The Iron robot, equipped with 82 degrees of freedom and 2250 TOPS of computing power, is scheduled for mass production in 2026 [0,8].

The company launched a “one car, dual energy” strategy, with the G9 model achieving a super range of 1602 km. Orders for the extended-range version are three times higher than pure electric models [0].

• Goldman Sachs
  : Upgraded the target price to 96 HKD and maintained a “Buy” rating, expecting better seasonal performance in Q1 2026 [0,5].
• Morgan Stanley
  : Highlighted XPeng’s hidden AI value, noting its potential to compete with tech companies beyond EV peers [0,4].

XPeng deepened its partnership with Volkswagen, with plans to mass-produce collaborative models by early 2026. Technology licensing revenue is forming a positive cycle [0].

XPeng recently donated 5 million RMB to support victims of the Hong Kong Tai Po fire [0].