Why XPeng’s latest expansion and delivery update matters now

XPeng (XPEV) has become a focus for investors after reporting March vehicle deliveries of 27,415, an 80% month on month jump, alongside a new three year Latin America plan anchored in Mexico.

The company also reported 62,682 vehicles delivered in the first quarter of 2026 and outlined intentions to introduce both pure electric and range extended models in Latin America from 2027, aiming for broader regional coverage by 2028.

Despite the delivery jump and Latin America plan, XPeng’s recent momentum has been soft, with the 30 day share price return of 8.37% and year to date share price return of 15.37%. Meanwhile, the 3 year total shareholder return of 73.25% contrasts with a 5 year total shareholder return of 44.94%, suggesting a mixed picture of long term rewards.

If XPeng’s global push has your attention, it may be a good moment to see what other EV related names are doing across the supply chain with 33 robotics and automation stocks

With XPeng shares down 15.37% year to date and trading below the average analyst price target, yet carrying mixed multi year returns, is this a reset that creates a potential opportunity or is future growth already priced in?

Most Popular Narrative: 38.6% Undervalued

XPeng’s most followed narrative pegs fair value at $28.16, well above the last close at $17.29, putting its recent Latin America push into a sharper context.

XPeng's rapid in-house development and deployment of proprietary AI hardware (Turing AI SoC) and vision-based ADAS are expected to significantly advance its vehicle autonomy and smart cockpit solutions, aligning with surging consumer demand for intelligent, software-centric vehicles and setting the stage for higher-margin software revenue and enhanced gross/net margins.

Curious what kind of revenue trajectory, margin shift, and future earnings multiple this narrative leans on to justify that gap to fair value? The full storyline ties XPeng’s AI push, overseas ramp and profitability timeline into one detailed set of assumptions that could change how you view the current price.

Result: Fair Value of $28.16 (UNDERVALUED)

However, this storyline can crack if XPeng’s net losses persist or if intense price competition in China and trade tensions limit the payoff from its global expansion.

Another View: What the multiples are saying

That $28.16 fair value narrative hinges on strong earnings progress, but the current pricing tells a different story. XPeng trades on a P/S of 1.5x, which is high compared with the US Auto industry at 0.6x, and slightly above its own fair ratio of 1.4x. That mix of premium to the sector but only a small gap to the fair ratio raises a simple question: is the real risk here overpaying for growth that is still uncertain or underestimating what XPeng can deliver over time?

Next Steps

With sentiment on XPeng clearly split, this is a good moment to look through the data yourself and evaluate the optimism around its story, starting with 2 key rewards.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.