Core Viewpoint - XPeng and Li Auto are prominent players in China's new-energy vehicle (NEV) market, each with distinct strategies and growth trajectories, making them worthy of comparison for investment prospects [1][2]. Group 1: XPeng Overview - XPeng delivered a record 94,008 vehicles in Q1 2025, marking a 331% year-over-year increase, driven by the success of the Mona M03 [3]. - Revenue for XPeng is projected to increase by 92% in 2025, with earnings expected to rise by 65% [3][4]. - Vehicle margins improved to 10% in Q4 2024 from 4.1% a year ago, with gross profit soaring to RMB 5.8 billion in 2024 from RMB 451 million in 2023 [5]. - XPeng's innovations in AI and autonomous driving, including the AI Hawkeye Visual Solution and smart driving tech, differentiate it from competitors [6]. - XPeng trades at a forward sales multiple of 1.52, which is higher than Li Auto's 0.92, raising concerns about valuation after a 148% stock rally [7]. Group 2: Li Auto Overview - Li Auto delivered over 500,000 vehicles in 2024, a 33% increase from 2023, and achieved a net income of $1.5 billion [10]. - Total revenues for Li Auto in 2024 reached $19.8 billion, with a vehicle margin of 19.8%, indicating stronger pricing power compared to XPeng [11]. - Li Auto has $9 billion in cash and manageable debt, allowing for aggressive R&D and international expansion [11]. - The company plans to launch several battery electric vehicle (BEV) models in the next 12-18 months, including the Li MEGA minivan and new SUVs [12]. - Li Auto's gross margins decreased from 23.5% to 20.3% year-over-year due to pricing pressures [13]. Group 3: Comparative Analysis - XPeng is noted for its rapid growth and technological innovations, while Li Auto excels in profitability and cash flow strength [16]. - Both companies currently hold a Zacks Rank 3 (Hold), indicating a cautious investment stance [17]. - If investors prioritize growth and technological leadership, XPeng may be the preferred choice at this stage [17].