XPeng's recent actions have left investors unhappy.

XPeng performed a “rise then fall” act again. Last week it was celebrating its Q3 financial report, and this week the stock price has directly sunk 19.7%. What's going on?

The financial report looks quite good.

The Q3 report is actually quite impressive - both the delivery volume and revenue have increased by over 100% year-on-year (149.3% and 101.8%, respectively). Normally, this should trigger a rise.

But once the Q4 guidance was released, investors were left feeling disheartened.

XPeng's expectations for Q4 are:

• Delivery volume of 125,000 to 132,000 units (YoY increase of 36.6% - 44.3%)
• Revenue of 21.5-23 billion RMB (YoY growth of 33.5%-42.8%)

This number could be hyped for a year elsewhere, but compared to the halved growth rate in Q3, the market response is very realistic — the drop from high growth to medium growth is the reason for the sell-off.

There is another question

XPeng is a company that continues to incur losses, and its stock price has risen by 70% this year. Such a sharp rise is inherently dangerous for a money-losing business, and now the financial report shows that the growth rate is slowing down… Investors' patience is indeed being tested.

Conclusion: It's not that the financial report is bad, but rather that the market's expectations for the “future” have been proven wrong.