CNBC's The China Connection Newsletter: Competing AI Approaches
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 10 2025
0mins
Should l Buy XPEV?
Source: CNBC
China's AI Strategy: China is adopting a pragmatic approach to artificial intelligence, focusing on practical applications and a national AI fund of $8.42 billion, contrasting with the U.S.'s massive investment strategies.
Investment Trends: State-backed funds are increasingly supporting Chinese startups in hardware and AI, while foreign investment has slowed, reflecting a shift in focus from software to hardware development.
Market Position: Despite challenges in advanced chip technology, local companies are producing competitive AI models, with over 40% of U.S. firms in China acknowledging that local rivals are ahead in AI adoption.
Economic Indicators: China's exports to the U.S. have significantly declined, while consumer prices fell 0.4% year-over-year in August, indicating economic pressures, despite some optimism about the overall economy.
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Analyst Views on XPEV
Wall Street analysts forecast XPEV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XPEV is 29.67 USD with a low forecast of 20.00 USD and a high forecast of 50.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 17.720
Low
20.00
Averages
29.67
High
50.00
Current: 17.720
Low
20.00
Averages
29.67
High
50.00
About XPEV
XPeng Inc is a holding company mainly engaged in the design, development, manufacturing and marketing of smart electrical vehicles (EVs). The Company develops full-stack advanced driver assistance systems (ADAS) software in house and has deployed such software on mass-produced vehicles. The Company offers various models, including G9 (mid- to large-sized sport utility vehicle (SUV), P7i (sports sedan), G6 (coupe SUV), X9 (seven-seater multi-purpose vehicle (MPV)), MONA M03 (sedan) and P7+ (family sedan). The Company operates stores across China, including both stores directly operated by the Company and franchised stores. The Company also offers technical research and development services, services embedded in a sales contract, maintenance service, supercharging service.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Global Payment Partnership: XPeng has formed a strategic partnership with Antom, becoming the first Chinese EV maker to establish a global payment collaboration, with plans to expand from Hong Kong to Southeast Asia and other markets by 2026, significantly enhancing its international competitiveness.
- Charging Network Expansion: XPeng's charging network spans 31 countries with over 2.66 million charging piles, and this collaboration will integrate over 300 payment methods, improving user charging experiences and further promoting EV adoption.
- Overseas Delivery Growth: XPeng's overseas deliveries surged by 96% year-on-year to 45,008 units in 2025, indicating strong demand in international markets, although a 34% year-on-year decline in January 2026 deliveries highlights market volatility.
- Regional Payment Integration: Antom will assist XPeng in integrating local payment methods in markets like Indonesia and Malaysia, such as DANA and Touch ‘n Go eWallet, further supporting XPeng's growth strategy and enhancing user convenience.
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- Global Payment Partnership: XPENG becomes the first Chinese new-generation EV maker to establish a global payment partnership with Antom, marking a significant milestone in its expansion of EV charging services and enhancing its competitiveness in international markets.
- Charging Payment Feature Launch: On February 9, 2026, XPENG launched its charging payment functionality in Hong Kong, allowing users to pay directly through the XPENG APP using Antom's payment solution, which is expected to attract more users to XPENG's charging services.
- Market Expansion Plans: The partnership will expand to Southeast Asia in 2026, including markets like Singapore, Thailand, and Malaysia, with Antom assisting XPENG in integrating various local payment methods, further enhancing the convenience and accessibility of its global charging network.
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- Cost Reduction: Pony.ai reported that the bill of materials for its seventh-generation autonomous driving system has decreased by approximately 70% compared to the previous generation, which not only improves deployment economics but also provides stronger financial backing for future commercial operations.
- Feature Enhancements: The new generation of Robotaxis includes features such as Bluetooth-based automatic unlocking, in-cabin voice interaction, online music, and pre-trip climate control, aimed at enhancing passenger experience and reducing motion sickness, thereby increasing market competitiveness.
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