Xpeng’s shares increased by as much as 6% in premarket trading in New York after the company reported stronger-than-expected first-quarter earnings.

As of 12:44 p.m. London time, the stock was up 5.23%.

The Chinese electric vehicle maker announced first-quarter deliveries of 94,008 vehicles.

It expects second-quarter revenue to range between 17.5 billion yuan (US$2.5 billion) and 18.7 billion yuan (US$2.7 billion), which exceeds market estimates.

The company projects deliveries of 102,000 to 108,000 vehicles in the second quarter, reflecting a year-over-year growth of up to 257.5%.

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🔗 Source: CNBC

🧠 Food for thought

1️⃣ China’s EV market is creating clear winners amid intense competition

China’s electric vehicle industry is becoming increasingly stratified with clear performance tiers emerging among manufacturers despite overall market growth.

XPeng’s projected 237.7% to 257.5% year-over-year growth for Q2 2025 significantly outpaces the broader Chinese EV market, which grew at 40% in 2024 1.

This performance gap is further evidenced by delivery patterns. XPeng has maintained over 30,000 monthly deliveries for six consecutive months, while market leader BYD sold 371,419 vehicles in March alone 2.

Meanwhile, Tesla faces challenges in this competitive landscape, with Chinese sales dropping 11.5% year-over-year in March and weekly registrations down 69% compared to last year 3.

These divergent growth trajectories suggest the market is sorting between winners and strugglers, with companies like XPeng and BYD gaining momentum while others face headwinds despite China’s overall EV adoption rate surpassing 50% of new car sales 4.

2️⃣ New entrants are reshaping the competitive dynamics in China’s EV sector

Technology companies are successfully challenging traditional automakers in China’s EV market, demonstrating how sector boundaries are blurring.

Xiaomi, primarily known for smartphones, delivered 29,000 electric vehicles in March 2025, an impressive figure for a company that only recently entered the automotive industry 2.

The success of these newer entrants contrasts with established global players like Tesla, whose weekly registrations in China fell to just over 3,000 units recently, highlighting how local competition is intensifying 3.

China’s EV market has expanded dramatically from around 1 million battery electric vehicles in 2020 to over 6 million in 2023, creating space for multiple successful manufacturers despite the intensifying competition 5.

The diversity of successful players, from tech companies to EV-only startups to traditional automakers like BYD, demonstrates that various business models can succeed in this rapidly evolving market.

Recent Xpeng developments

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