XPEV Should I Buy
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Xpeng Inc. (XPEV) is not a strong buy at the moment for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. While the company has demonstrated significant revenue growth and innovation, the negative market sentiment, declining vehicle deliveries, ongoing investigation, and weak financial performance make it a less favorable investment currently. Holding off on buying until clearer positive trends emerge is recommended.
The MACD is positive but contracting, indicating weakening momentum. RSI is neutral at 45.67, and moving averages are converging, suggesting no clear trend. The stock is trading near its support level of 17.363, with resistance at 18.574. Overall, the technical indicators suggest a neutral to slightly bearish outlook.
Xpeng plans to build a humanoid robot factory, showcasing innovation and potential future growth. The company's revenue increased significantly by 101.91% YoY in Q3 2025, and gross margin improved by 31.98% YoY.
The company is under investigation for securities fraud, which has negatively impacted investor sentiment. Vehicle deliveries dropped significantly in January 2026, and the stock price has been declining. Analysts have lowered price targets, citing weak sales volumes and margins. Additionally, there is no significant hedge fund or insider activity to support the stock.
In Q3 2025, revenue increased by 101.91% YoY, but net income dropped by -78.92% YoY, and EPS fell by -76.92% YoY. Despite a gross margin improvement to 20.14%, the company remains unprofitable, with a net loss of -$53.21 million.
Analysts have mixed views, with some maintaining Buy ratings but lowering price targets due to weak sales and margins. The most recent ratings include an Underweight rating from Barclays with a price target of $17 and an Overweight rating from JPMorgan with a reduced price target of $34.
