Why Shares of XPeng Drove Lower This Week

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.

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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.

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.