To The Moon

🌟🌟🌟Q3 25 earnings are out for 3 Chinese EV giants :  XPeng, Li Auto and Nio.  In order to determine which is the best play among the 3 companies, let's check out their individual Q3 25 performance metrics and future outlook.  Each company presents a distinct case, appealing to different investor strategies amidst an intensely competitive Chinese EV market.

Q3 25 Earnings Summary and Analysis

Delivery :

XPeng $XPeng Inc.(XPEV)$  delivered 116,007 vehicles which was a record high while Li Auto $Li Auto(LI)$  delivered 93,211, down YoY and QoQ.  Nio $NIO-SW(09866)$  delivered 87,071 vehicles which was a record high for the company.

Revenue:

XPeng's revenue was USD 1.42 billion which was below estimates while Li Auto's revenue was USD 3.87 billion which beats  estimates.  Nio's revenue was USD 3.06 billion which meets guidance. 

EPS:

XPeng's EPS was - USD 0.06 which beats estimates and the lowest loss in 5 years.  Li Auto 's EPS was - USD 0.05 which missed estimates, net loss recorded.  Nio' s EPS was  - USD 0. 32 which missed estimates.

Key Takeaway :

XPeng is nearing profitability with strong delivery growth.  This was driven by new models - Mona M03,  G7 SUV and AI advancements.   Key AI advancements include AI powered in-Car OS, Robotaxis and L4 Autonomous Driving and Humanoid Robots (IRON). 

Li Auto experienced a net loss after 11 quarters of profitability, with a significant drop in deliveries year over year.  This was due to a significant product recall of 11,411 units of its MEGA 2024 Electric Multi Purpose Vehicles in October 2025.  The voluntary recall followed a widely publicised fire incident involving a MEGA EV in Shanghai in October 2025.  This recall was a major factor contributing to Li Auto's net loss in 3Q 25.

Nio had record deliveries in Q3 26 and improved revenue.  It showed improvements in margins and confidence in achieving profitability in Q4 25.   Nio is also expanding with multi brand strategy.

Which is the Best Play? 

For Growth and Upside Potential : XPeng 

XPeng appears to be a strong growth play. It reported its lowest quarterly net loss in 5 years and is on track for profitability. 

Its strategy, which heavily emphasizes advanced driver assistance systems and long term bets on Robotaxis and Humanoid Robots, has drawn significant investor interest and a Moderate Buy consensus from analysts.  XPeng's strong delivery forecast for Q4 suggests continued momentum. 

For a Potential Turnaround : Li Auto 

Li Auto experienced a difficult quarter, marking its first net loss in years after a period of strong performance.  It faces challenges from recent product issues like the Li MEGA  recall and intense competition.  However analysts still rate it as a Strong Buy due to its strategic product pipeline and a belief it is undervalued at the current levels. 

A successful launch of its upcoming BEV models and a good execution of its AI strategy could lead to a significant rebound. 

For a Steady Diversified Play : Nio 

Nio demonstrated solid, positive performance with record deliveries and confidence in achieving profitability soon. 

Nio's multi brand strategy Nio, ONVO and Firefly offers a broader market exposure.  While it still reported a loss, the year on year and quarter  on quarter losses have decreased significantly, suggesting that it is on the right path. 

Concluding Thoughts 

My Top Pick among the 3 EV makers would be XPeng as it seems to offer the most immediate positive momentum and a clear path to profitability.  XPeng's laser focus on full stack, self developed AI technologies in areas like advanced driver assistance systems (ADAS), humanoid robots and even flying cars, demonstrates a clear vision to become a leader in "embodied intelligence" and "physical AI". 

This innovative approach positions XPeng as potentially more than  just an EV company, transforming it into a broader technology AI company.  Kudos to XPeng's CEO He Xiaopeng for his vision and foresight for the future of XPeng. 

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