Why XPeng Inc (XPEV) Is Skyrocketing So Far In 2025?

We recently published a list of Why These 15 Automotive Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where XPeng Inc (NYSE:XPEV) stands against other automotive stocks that are skyrocketing so far in 2025.

The automotive industry is starting to shift gears this year as supply chains continue to improve and the worldwide rate-cut cycle stimulates more demand. In addition, Trump’s election is also changing things with loosened regulations helping legacy automotive companies, and tariffs helping domestic companies, though it hurts companies abroad.

Regardless, the electrification megatrend has continued, and electric vehicle shipments are projected to surge by 17% this year. Also, the European automotive sector is showing signs of recovery with a projected 2.1% growth.

The broader sector could get a lot hotter this year if macroeconomic metrics cooperate and rates come down more. Let’s take a look at the stocks that have already started to climb.

Methodology

For this article, I screened the top-performing automotive stocks year-to-date. Stocks that I have covered recently will be excluded from this list.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Why XPeng Inc (XPEV) Is Skyrocketing So Far In 2025?

A close-up of a luxury electric sports sedan, its sleek body reflecting the energy of progress.

XPeng Inc (NYSE:XPEV)

Number of Hedge Fund Holders In Q3 2024: 20

XPeng Inc (NYSE:XPEV) is a Chinese EV company.

The stock is up markedly so far this year due to January 2025 deliveries being up 268% year-over-year. The company delivered 30,350 vehicles and this was its third consecutive month above 30,000 units.

Its budget EV model at a starting price of about $17,000 also achieved 15,000 monthly deliveries for two straight months.

XPeng entered the U.K. market with its G6 SUV and plans to enter 60+ countries this year. That said, price wars with BYD could lead to more turbulence in its home market.

The consensus price target of $12.91 implies 16.69% downside.

XPEV stock is up 31.3% year-to-date.

Overall, XPEV ranks 3rd on our list of automotive stocks that are skyrocketing so far in 2025. While we acknowledge the potential of XPEV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame.If you are looking for an AI stock that is more promising than XPEV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.