Why Shares of XPeng Drove Lower This Week
Key Points
XPeng reported strong year-over-year growth in revenues and vehicle deliveries in the third quarter of 2025.
The company provided fourth-quarter 2025 guidance that hasn't thrilled investors.
XPeng stock is up about 70% since the start of the year.
- 10 stocks we like better than XPeng ›
After sending shares higher last week, investors have been pumping the brakes on electric vehicle (EV) maker XPeng (NYSE: XPEV) over the past few days. While many had initially celebrated the company's third quarter 2025 financial results, they've taken a more bearish stance after digging further into the company's guidance.
According to data provided by S&P Global Market Intelligence, shares of XPeng dropped 19.7% from the close of trading last Friday through the end of Thursday's market session.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
A strong third quarter isn't distracting investors from where this EV maker thinks it's headed
Instead of recognizing the successes that XPeng reported in the third quarter, investors appear to be more focused on the company's guidance for the fourth quarter of 2025. For one, XPeng forecasts vehicle deliveries of 125,000 to 132,000, representing an increase of approximately 36.6% to 44.3% compared to the same period last year. Additionally, XPeng projects Q4 2025 revenue of 21.5 billion to 23 billion renminbi, representing a year-over-year increase of approximately 33.5% to 42.8%.
While the forecast is encouraging, the growth pales in comparison to what XPeng reported in Q3 205: year-over-year vehicle deliveries and revenue growth of 149.3% and 101.8%, respectively.
Should EV investors hitch a ride with XPeng stock?
Those looking to park an EV stock in their portfolios may be more interested in XPeng now after its recent pullback, but it's important to remember that shares are still almost 70% since the start of the year. For a consistently unprofitable company like XPeng, the risks appear to outweigh the benefits at this point. Fortunately, there are plenty of other EV stocks for investors to consider.
Should you invest $1,000 in XPeng right now?
Before you buy stock in XPeng, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and XPeng wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $569,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,107,298!*
Now, it’s worth noting Stock Advisor’s total average return is 982% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of November 17, 2025
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
