XPeng Inc. Focuses on AI‑Driven Growth Amid Mixed Market Sentiment
XPeng Inc. (09868.HK), a Guangzhou‑based electric‑vehicle (EV) manufacturer, announced a series of strategic initiatives and financial results on March 23, 2026. The company’s latest quarter ended December 31, 2025, brought a net profit for the first time in its history, while investors and analysts expressed concerns about volume growth and valuation.
Strategic Expansion of the Robotaxi Business
On March 23, XPeng officially established a dedicated Robotaxi division, signalling a push toward commercial ride‑hailing services. The division will coordinate product definition and project integration for the company’s forthcoming autonomous vehicle platform. The flagship product, the XPeng GX SUV, is slated to enter the market in the next quarter. The move follows the company’s earlier announcement of a physical AI research and development investment of RMB 7 billion for the year, targeting the shipment of approximately one million Turing chips in 2026.
XPeng’s CEO and chairman, He Xiaopeng, confirmed the investment plan during the earnings conference held on March 22. The announcement was accompanied by a broader strategy to increase AI spending, support international expansion, and launch new models in Mexico and other markets.
Financial Performance and Market Reaction
The quarter ending December 31, 2025, reported a net profit of RMB 0.38 billion (HKD 0.22 per share), reversing the loss of RMB 0.76 billion (HKD −0.76 per share) in the same period a year earlier. Revenue reached US 3.14 billion, while earnings per share improved to USD 0.06 from USD −0.19 in the prior year. These results marked XPeng’s first profitable quarter, a milestone highlighted by several analysts.
Despite the positive earnings, the stock experienced a decline in early trading on March 23, falling by 0.698 % with a trading volume of approximately USD 263 million. Short‑selling activity was significant, with a ratio of 20.853 %. The drop reflected concerns over the company’s ability to sustain volume growth and the valuation implied by its price‑earnings ratio of −34.51.
Financial analysts from Macquarie and US Tiger Securities reduced their stock ratings due to worries about volume growth and valuation. Macquarie cited “volume growth concerns” while US Tiger Securities highlighted “valuation concerns.” Both assessments suggest that while the company’s earnings trajectory is improving, market participants remain cautious about its future scalability.
Product Development and Market Presence
XPeng’s G9 Long‑Range EV has been undergoing iterative upgrades, including a battery upgrade and multiple software iterations, to address early performance issues. The company plans to launch the G9 in Mexico on March 25, alongside the G6 model, as part of its international rollout strategy.
The company’s 52‑week high and low, observed at HKD 110.8 and HKD 17.55 respectively, illustrate a highly volatile trading environment. With a market capitalization of approximately HKD 136.6 billion and a close price of HKD 71.6 on March 19, 2026, XPeng remains a significant player in the consumer discretionary sector within the Hong Kong Stock Exchange.
Conclusion
XPeng Inc. continues to invest heavily in AI and robotaxi technology while reporting its first profitable quarter. However, the market’s reaction—short selling and rating downgrades—underscores lingering uncertainty about the company’s ability to translate technology gains into sustainable volume growth and higher valuations.
