On the New York Stock Exchange, the company's shares slid by more than five percent. In the final quarter of 2025, the company had posted its first profit, with revenue of 22.25 billion yuan exceeding analyst forecasts. "Xpeng is now reliant on new models - particularly the Mona D02 - as well as growth in its export business," said Rosalie Chen of research firm Third Bridge. Xpeng is targeting markets including Latin America, with two models soon to be exported to Mexico. Additional vehicles are also slated for the European market. To date, however, the company lags significantly behind rivals such as BYD and MG in the region.
Furthermore, Xpeng is increasingly focusing on partnerships and licensing deals with other automakers. In China, the company is already collaborating with Volkswagen. Since last week, the ID.Unix 08, the first jointly developed vehicle, has been rolling off the assembly line at Volkswagen in China. Through this cooperation, Volkswagen hopes to regain ground in China's fiercely competitive electric vehicle market.
Recently, the Wolfsburg-based automaker unexpectedly reclaimed its crown as the largest car manufacturer in the People's Republic, a title it had surrendered to BYD after decades of dominance. However, this reflects less on VW's strength and more on the weakness of Chinese EV makers, who are suffering from the expiration of several electric vehicle incentive programs. According to data from consultancy Benchmark Mineral Intelligence, sales of electric and hybrid vehicles in China plunged by one-third last month.
(Reporting by Anhata Rooprai, written by Christina Amann. Edited by Olaf Brenner. For inquiries, please contact our editorial office at Berlin.Newsroom@thomsonreuters.com (for politics and economics) or Frankfurt.Newsroom@thomsonreuters.com (for companies and markets))
