Why XPeng’s Robotaxi milestone matters for stock watchers

XPeng (NYSE:XPEV) has begun internal employee testing of its Robotaxi platform, a step that connects ride hailing, autonomous dispatch and passenger journeys and could reshape how investors think about its autonomous driving ambitions.

XPeng’s recent Robotaxi testing and its new cooperation agreement with Autoliv arrive after a period where the share price has fallen 23.36% over 90 days and the 1-year total shareholder return is down 27.69%. This points to fading momentum despite ongoing product and partnership news.

If XPeng’s push into autonomous and Physical AI vehicles has your attention, it can be useful to widen the lens and review other automation focused opportunities through our 33 robotics and automation stocks

XPeng’s share price slide sits beside rapid progress in Robotaxis and new safety partnerships, leaving an open question for investors: are recent moves mainly about sentiment, or about how the market is valuing the core business?

Most Popular XPeng Narrative: 53.2% Undervalued

XPeng’s most followed narrative puts fair value at $28.16 per share, well above the last close at $13.19, and attributes that gap to long term AI and EV expansion assumptions.

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.

This view reaches that fair value gap by leaning heavily on faster revenue growth, rising margins and a richer future earnings multiple.

Result: Fair Value of $28.16 (UNDERVALUED)

However, XPeng’s narrative still hinges on turning ongoing net losses and heavy investment needs into sustainable profits, while intense EV price competition could put pressure on margins.

Another view on XPeng’s valuation

While the community narrative leans on a higher fair value for XPeng, the SWS DCF model paints a different picture. At $13.19, the stock is trading above an estimated future cash flow value of $9.81, which indicates a premium rather than a discount. For investors, that raises a simple question: which story feels more realistic?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out XPeng for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 45 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With XPeng’s mixed signals on valuation and growth still fresh in mind, it makes sense to move quickly and test the data for yourself using the 2 key rewards.

Looking for more investment ideas beyond XPeng?

If XPeng has sharpened your focus on where capital goes next, do not stop here. Broaden your watchlist with a few targeted stock idea sets.

• Target higher potential returns by scanning for beaten down quality in our 45 high quality undervalued stocks so you are ready when sentiment shifts.
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• Get ahead of the crowd by studying lesser known opportunities surfaced in the screener containing 20 high quality undiscovered gems before they appear on everyone else’s radar.

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.