XPeng (XPEV) Q3 Earnings Preview: A New Growth Cycle on the Horizon

Chinese electric vehicle (EV) manufacturer XPeng (XPEV) is set to release its Q3 2024 earnings report on November 19, with analysts anticipating significant improvements. The company is expected to narrow its loss per American Depositary Share (ADS) from $0.62 in the same period last year to $0.29. Meanwhile, revenue is forecasted to grow approximately 19% year-over-year to $1.39 billion.

Strong Q3 Performance Overview
XPeng delivered 46,533 vehicles in the third quarter, marking a 16% year-over-year increase. This growth was driven primarily by the successful launch of new models, particularly the XPeng MONA M03, which exceeded 10,000 deliveries in September alone, its first month of sales. This strong performance highlights the model's potential to anchor XPeng's continued expansion.

Market Sentiment and Future Outlook
XPeng recently garnered attention during its AI Day event in Guangzhou, where it demonstrated its advanced autonomous driving technology and unveiled the P7+ smart electric sedan. Positioned to compete with Tesla's (TSLA) full self-driving (FSD) technology, the P7+ reflects XPeng’s ambitions to cement its standing in the global EV market.

Earlier this month, Morgan Stanley analyst Tim Hsiao raised XPeng’s price target from $11.70 to $17 and reiterated a "Buy" rating. Hsiao expressed confidence in XPeng’s ability to capitalize on the next wave of artificial intelligence (AI) innovations, which he views as a critical driver of long-term growth.

Hsiao highlighted XPeng's ongoing innovations and capacity expansions across its vehicle and non-vehicle product lines, which he believes will strengthen its competitive moat. Furthermore, he noted that XPeng is entering a robust product cycle, starting with the successful MONA M03 launch. Hsiao predicts an “operational resurgence” in the second half of 2024, supported by new models, accelerating international expansion, and the incremental contributions from XPeng’s partnership with Volkswagen (DE).

Technical Analysis: Key Levels to Watch
From a technical perspective, XPeng’s stock remains in a downward trend on the daily chart. Currently trading at $13.01, the price is testing support at a previous high. If the Q3 results fall below expectations, the stock could break below this level and potentially drop to the next support at $10.63. Conversely, if the earnings report exceeds expectations, the stock has a strong likelihood of breaking through resistance at $15.68.

Conclusion
XPeng is steadily solidifying its position in the competitive EV market through the successful rollout of new models and cutting-edge technology. The upcoming Q3 earnings report is expected to showcase improvements in profitability and revenue growth, offering investors key insights into the company’s trajectory. As XPeng continues to expand its international presence and leverage its innovative edge, it is well-positioned to navigate the next phase of growth. However, technical factors highlight critical price levels that could shape the stock’s direction in the short term, making the Q3 results a pivotal moment for XPeng investors.

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