Xpeng (XPEV), one of China’s leading electric vehicle (EV) companies, recently shared the stage at the CVPR conference with top companies like Tesla (TSLA) and Nvidia (NVDA). At the event, the company showcased its progress in the world of physical AI — artificial intelligence controlling real-world devices. For those not familiar with what this means, physical AI can be anything from your car steering itself to humanoid robots using AI to go about work.
Xpeng’s primary focus at the last two CVPR conferences has been its in-house AI model called VLA 2.0. The difference is that VLA 2.0 was just being introduced in 2025, while in 2026 it is already being deployed at scale. VLA 2.0 is essentially the AI brain for Xpeng’s smart vehicles; it studies how humans drive and learns what needs to be done on the road, from switching lanes to braking. With VLA 2.0 being mass-deployed, Xpeng is now challenging Tesla’s Full Self-Driving (FSD) software, which has been the leading AI software module in the smart vehicle category.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
Another interesting update from the company’s Head of General Intelligence Center, Dr. Xianming Liu, was that the company’s single-job training efficiency skyrocketed 4360% using the scaling law, meaning Xpeng's AI is being trained faster now. Reportedly, GPU utilization also improved significantly enough to be on par with standards set by the world’s biggest AI companies, going from 40% to 90%.
About Xpeng Stock
Xpeng is a Chinese smart EV company that is also developing VLA2.0, an in-house AI being integrated in its electric cars. Founded in 2014, the company now operates in 60 countries with vehicles like the P7, the X9, the G6, and the flagship GX SUV, among others. CEO He Xiaopeng continues to expand the company in terms of geographical presence and product portfolio, with the firm currently working on flying vehicles and humanoid robots as well.
Despite all the promising technology showcased at the CVPR conference, XPEV stock continues to downtrend, now down 29% over the last 12 months. One reason for this may be uncertainty around Chinese stocks and negative investor sentiment about AI models remaining under the spotlight in a U.S.-China trade-war scenario.
In the absence of any significant profits, it's hard to carry out the valuation exercise on XPEV stock. Shares trade at a price-to-sales (P/S) multiple of 1.3 times, which is well above the consumer discretionary sector average. This, however, is still a discount to the stock’s own five-year average.
Even as an AI stock, XPEV has come out of favor. Negative consensus earnings growth is a major factor, but it wouldn’t be wise to ignore the stock based just on that. If the VLA 2.0 integration goes as planned, Xpeng’s fortunes could change drastically.
www.barchart.com Xpeng Reports Lower Revenue But Higher Gross Profit
Xpeng reported first-quarter fiscal 2026 earnings on May 28. Total revenue for the quarter saw a nearly 18% year-over-year (YOY) dip to RMB 13.03 billion. That revenue fell below analysts’ consensus of RMB 13.95 billion. Despite the loss of revenue, the reduced cost of sales also allowed gross profit to improve from RMB 2.46 billion to RMB 2.68 billion, resulting in improved gross margins.
In Q2 2026, Xpeng expects to deliver between 100,000 and 106,000 vehicles, a massive sequential increase of roughly 59% to 69%. Revenue for Q2 is projected to be between RMB 19.6 billion and RMB 20.8 billion. CEO Xiaopeng He stated that four new models will be launched this year. He also reiterated his resolve to mass-produce robotaxis and humanoid robots.
What Are Analysts Saying About Xpeng Stock?
According to a report released on June 1, Barclays analyst Jiong Shao reaffirmed a “Sell” rating on Xpeng with a $16 price target. In contrast, Citi maintained a “Buy” rating on XPEV stock while lowering its price target from $25.60 to $22.50 in late May. While negative sentiment persists, some analysts still see upside.
According to 18 Wall Street analysts with coverage, XPEV stock carries a consensus “Moderate Buy” rating. The mean price target of $22.89 reflects 58% potential upside from current levels. Moreover, the highest price target of $30 suggest an impressive potential surge of 107% from here.
www.barchart.com On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
With Growing Hype Ahead of the SpaceX IPO, the IPFX SPAC Merger With Quantum Space Looks Interesting Dollar General Stock Is Staging a Technical Turnaround as Consumer Sentiment Weakens This Analyst Just Upped the Price Target on SanDisk Stock. Here's Why. Xpeng Is Betting Big on Physical AI. Here’s Why You Should Buy XPEV Stock.