By Jiahui Huang

XPeng's shares rose in Hong Kong after the company reported its first-ever quarterly net profit.

The gains came after the Chinese electric-vehicle maker a net profit for the fourth quarter of 2025, which was boosted by strong sales and margins.

Its shares rose 2.4% to 73.30 Hong Kong dollars, or equivalent of $9.34, early Monday. In comparison, Hong Kong's benchmark Hang Seng Index was down 2.7%.

"It is encouraging to see XPeng monetizing its advanced technology, with Volkswagen's first model on its platform, the ID.UNYX 08, launching on schedule in early March," Bernstein analysts wrote in a note. The ID.UNYX 08 is an all-electric full-size sports utility vehicle equipped with fast-charging technology and partial driving automation.

XPeng's net profit was 383.2 million yuan, equivalent to $55.7 million, compared with a net loss of 1.33 billion yuan in the same period a year earlier. It guided for first-quarter revenue of 12.2 billion to 13.3 billion yuan and sales of 61,000-66,000 units.

That implies March deliveries of 26,000 to 31,000 units, which would be above the average sales in the first two months of the year, Bernstein added.

The company wants to transform itself into a physical AI company by venturing into robotaxis and humanoid robots. That said, Bernstein thinks the company's ambition to become a global leader in physical AI agents, while bold, may not resonate with investors when its core EV business remains under pressure, the analysts added.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

March 22, 2026 23:11 ET (03:11 GMT)

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