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Xpeng shares zoom ahead on Q2 forecast

STORY: Xpeng expects deliveries to accelerate in the second quarter.

The automaker sees price cuts drawing more buyers to its electric vehicles in China.

Investors were delighted by Tuesday's (May 21) announcement and shares soared 25% before scaling back.

Xpeng expects to hand over up to 32,000 vehicles in Q2 - well up on the year.

The forecast signals a few things were paying off for the firm, including promotions and discounts.

Heavy investments in new technology, like artificial intelligence and self driving also helped.

Experts see discounts for Xpeng's G6 and G9 electric SUVs boosting deliveries volume in the near term.

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But they warned that new entrants like Xiaomi will pressure Xpeng's sales in the long run.

Xpeng's first-quarter revenue of $905.21 million beat estimates.

The automaker also wants to expand into overseas markets.

It aims to capitalize on EV subsidies many countries have offered in efforts to cut fossil fuel consumption.