XPeng Faces Challenges Amidst Intense EV Competition in China

XPeng, a Chinese electric vehicle maker, predicts lower fourth-quarter revenue due to an ongoing price war and stiff competition. Despite record deliveries, XPeng faces challenges with its brand appeal and profitability. Future efforts focus on affordable EV segments and innovative concepts like flying cars and humanoid robots.

Chinese electric vehicle manufacturer XPeng has announced that its fourth-quarter revenue forecast falls short of estimates, marking a significant impact from a persistent price war and heightened competition in China's extensive auto market. This news caused an 8% drop in XPeng's U.S.-listed shares during early morning trading on Monday.

The company's expected revenue, ranging between 21.5 billion yuan and 23 billion yuan, lags behind the analysts' average estimate of 26 billion yuan. A key factor in this setback includes the launch of the mid-to-low-end Mona 03 and reduced investment in intelligent driving, according to analyst Rosalie Chen from Third Bridge.

Despite achieving record deliveries and exploring future innovations such as flying cars, XPeng is concentrating on lower-cost EVs to maintain competitiveness. The company's third-quarter revenue aligns with expectations, buoyed by a substantial annual increase in vehicle deliveries, but its profitability remains under pressure.

(With inputs from agencies.)