XPeng Faces Headwinds Amid Intense Price War in China's EV Market

Chinese electric vehicle maker XPeng predicts a challenging fourth quarter due to fierce price competition in the world's largest auto market. Despite strong deliveries and reduced losses, XPeng's revenue projection falls short of expectations, highlighting the competitive pressures and strategic shifts within China's crowded EV sector.

XPeng, a prominent Chinese electric vehicle maker, has issued a cautious forecast for the fourth quarter, pointing to the challenges posed by a sustained price war and fierce competition in the auto industry.

Despite achieving record deliveries in October alongside rival NIO, XPeng's revenue projection of 21.5 billion to 23 billion yuan falls short of analysts' expectations of 26 billion yuan, highlighting the uneven effects of reduced profitability in the sector. Falling nearly 3% in premarket trading, XPeng's U.S.-listed shares reflect market concerns.

The company's strategic focus on lower-priced models, like the Mona 03, and investments in innovative projects such as flying cars and humanoid robots, underscore its efforts to navigate the challenging landscape. However, these ventures may weigh on near-term earnings as the competitive EV market continues to evolve in China.

(With inputs from agencies.)