XPeng Inc. (NYSE:XPEV) Quarterly Earnings Preview and Financial Analysis

• XPeng Inc. (NYSE:XPEV) is set to release its quarterly earnings with an estimated EPS of -$1.45 and projected revenue of $16.15 billion.
• The company's stock value has surged by 99% in 2025, despite flat vehicle sales, due to increased average selling prices and reduced costs.
• Financial metrics reveal a mixed picture with a negative P/E ratio of -27.93 but a moderate debt-to-equity ratio of 0.48, indicating a balanced level of debt.

XPeng Inc. (NYSE:XPEV) is a leading Chinese smart electric vehicle manufacturer, known for its innovative approach to electric mobility, focusing on smart features and autonomous driving technology. Competing with giants like Tesla and NIO, XPeng is a significant player in the rapidly growing EV market. The company is eagerly anticipated to release its quarterly earnings on March 18, 2025, with Wall Street estimating an earnings per share of approximately -$1.45 and projected revenue of around $16.15 billion.

In 2025, XPeng's stock value has experienced an impressive surge of 99%, driven by anticipated breakthroughs in their fiscal year 2024 earnings. Despite flat vehicle sales, the company has successfully increased its average selling prices and reduced costs, leading to a significant reduction in net loss relative to revenue. This strategic move has bolstered investor confidence, particularly in Hong Kong, where daily traded volumes are 2.3 times higher than in the U.S.

XPeng's financial metrics present a mixed picture. The company has a negative price-to-earnings (P/E) ratio of approximately -27.93, indicating it is not currently profitable. However, the price-to-sales ratio of about 2.15 suggests that investors are willing to pay $2.15 for every dollar of sales, reflecting some level of investor confidence in the company's future prospects.

The enterprise value to sales ratio stands at 2.28, slightly higher than the price-to-sales ratio, while the enterprise value to operating cash flow ratio is significantly high at 692.77. This indicates that XPeng is generating low operating cash flow relative to its enterprise value. The negative earnings yield of -3.58% further highlights the company's current lack of profitability.

Despite these challenges, XPeng maintains a moderate debt-to-equity ratio of 0.48, indicating a balanced level of debt relative to its equity. The current ratio of 1.37 suggests that the company has a reasonable level of short-term liquidity to cover its current liabilities. As XPeng prepares to announce its financial results, investors will be keenly watching for signs of continued growth and strategic advancements in the competitive EV market.