XPENG (NYSE:XPEV) dropped more than 7% intra-day today despite reporting better-than-expected fourth-quarter earnings and issuing a bullish delivery and revenue forecast for early 2025.

The Chinese EV maker narrowed its adjusted loss to RMB0.73 ($0.10) per share, significantly outperforming analyst expectations of a RMB2.16 loss. Revenue climbed 23.4% year-over-year to RMB16.11 billion ($2.21 billion), slightly exceeding projections of RMB16.06 billion.

XPENG delivered 91,507 vehicles in Q4, marking a 52.1% increase from the previous year. The company also saw a notable improvement in vehicle margins, rising to 10% from 4.1% a year ago, driven by cost efficiencies and operational optimizations.

Looking ahead, XPENG expects to maintain its momentum in Q1 2025, forecasting deliveries between 91,000 and 93,000 vehicles, which represents a staggering 317-326% year-over-year increase. The company also anticipates revenue between RMB15 billion and RMB15.7 billion, surpassing analyst estimates of RMB14.56 billion.