Northeast Securities has initiated coverage on XPENG-W (09868) with a "Buy" rating, highlighting that XPeng achieved record highs in deliveries, revenue, and gross margin in the third quarter of 2025. The company has embarked on a robust product cycle by launching its "BEV + EREV" dual-energy strategy and multiple new models. Concurrently, XPeng is accelerating its transformation into a "Physical AI" company, having unveiled the VLA 2.0 large model, a front-load mass-produced Robotaxi, and the humanoid robot IRON, thereby advancing the R&D and commercial deployment of intelligent driving and embodied AI technologies. The main viewpoints from Northeast Securities are as follows.
In the third quarter of 2025, the company achieved total revenue of RMB 20.38 billion, a year-on-year increase of 101.8%, while its net loss narrowed significantly to RMB 380 million. Quarterly total deliveries reached 116,007 vehicles, surging 149.3% year-on-year to set a new historical record. Benefiting from strong performance in technical service revenue, the company's comprehensive gross margin surpassed 20% for the first time, reaching 20.1%, indicating a marked improvement in profitability.
To address user range anxiety, the company has formally launched its dual-power strategy of "Battery Electric Vehicle (BEV) + Extended-Range Electric Vehicle (EREV)." The first EREV model, the X9 EREV, was officially launched in November 2025, equipped with a large 63.3kWh battery and a third-generation range extender with an oil-to-electricity conversion efficiency exceeding 3.6kWh/L, achieving a CLTC pure electric range of 452km and establishing a technological edge in the EREV market. In Q1 2026, core models like the G6, G7, and P7i will also launch EREV versions. Furthermore, the company plans to launch four all-new models in 2026, including two SUVs based on the MONA platform and a full-size 6-seater SUV. The institution expects that with the sequential launch of EREV and new models, XPeng will formally commence a strong product cycle, with vehicle sales expected to climb continuously.
At its 2025 Tech Day, the company clearly demonstrated its determination and specific pathway to transform into a "Physical AI" company. The core technology, VLA 2.0, is the second-generation Vision-Language-Action large model. By eliminating the language translation step, it enables direct mapping from vision to action, improving inference efficiency by 12 times. This model has increased the average intervention-free mileage in complex narrow-road scenarios by 13 times. VLA 2.0 is scheduled for a full rollout on Ultra models in Q1 2026, with potential for technological spillover into other embodied AI fields like robotics. For Robotaxi commercialization, the company unveiled China's first fully self-developed, front-load mass-produced Robotaxi, planning to launch three models in 2026 and commence trial operations in the second half of 2026. While there is still a gap in operational experience compared to industry leaders, its front-load mass-production capability and innovative "Full Sharing + Private" business model position it to capture a share of the trillion-yuan mobility market. The humanoid robot, IRON, is set for mass production by the end of 2026, with pilot deployments prioritized in commercial scenarios such as tour guidance and shopping assistance. IRON shares its AI technological roots with the smart car business, and its R&D outcomes are expected to reciprocally benefit autonomous driving, creating a virtuous cycle.
Potential risks include a slower-than-expected pace of new model launches; vehicle sales falling short of expectations; fluctuations in raw material prices; intensification of industry price wars; and performance forecasts and valuations not meeting expectations.