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Shares of XPeng Inc. (NYSE: XPEV) dropped by over 6% to $18.03 in Thursday trading, as investors reacted to broader market weakness and regulatory discussions around China’s auto export practices.

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XPeng Inc. (XPEV)

Despite the dip, the stock has delivered a strong year-to-date return of 51.94% and an impressive one-year return of 127.14%, outperforming the Hang Seng Index.

Positive Outlook from Analysts and GF Value

XPeng continues to receive favorable longterm sentiment from analysts. The average 12-month price target from 25 analysts is $24.34, implying a potential 34.03% upside from current levels. The highest forecast is $30.07, while the lowest is $10.93. Separately, GuruFocus’ proprietary GF Value metric estimates a fair value of $31.00, implying a 70.7% upside.

Brokerage firms currently assign XPeng an average recommendation of 2.1 on a 1-5 scale, which equates to an “Outperform” status. While analyst revisions have been minimal over the past month, the consistency in expectations reflects cautious optimism about XPeng’s future performance.

Regulatory Clarity on Used Car Export Practices

A recent report from The Paper, a Shanghai-based outlet, spotlighted concerns over new vehicles being shipped overseas under the label of “used” cars. XPeng’s General Manager of International Business, Tang Zhikun, denied the company’s involvement in this gray market strategy. Tang emphasized XPeng’s restraint from engaging in these tactics, which have historically inflated car export figures in China.

With regulators across the Middle East, North Africa, and Central Asia tightening rules on zero-mileage used imports, XPeng’s clean record could serve as a strategic advantage in securing long-term trust and market share.

Earnings Forecast and Industry Standing

Looking forward, analysts project XPeng will report a full-year loss of $0.28 per share on $11.44 billion in revenue. These estimates mark notable year-over-year improvements of 66.67% in earnings and 101.84% in sales, reflecting a recovery in demand and operational efficiency.

The company is currently rated Zacks Rank #3 (Hold), signaling a neutral short-term outlook. XPeng operates within the “Automotive – Foreign” category, which ranks in the bottom 11% of all industries, based on the Zacks Industry Rank.

Conclusion

XPeng’s recent stock dip appears to be more of a market reaction than a shift in fundamentals. With a clean regulatory record, growing global demand, and strong analyst support, the company may offer investors a compelling entry point. All eyes now turn to the next earnings report, where XPeng has the opportunity to affirm its growth narrative and boost investor confidence.

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