(Reuters) -Chinese electric vehicle maker XPeng ( XPEV ) forecast fourth quarter revenue above Wall Street estimates on Tuesday, as a refreshed product line-up and improving domestic market help the company see higher demand.

U.S.-listed shares of the company were up 5.1% in premarket trading.

XPeng ( XPEV ) is seeing a steady demand for its MONA M03 mid-sized sedan, having delivered more than 10,000 units for the second straight month in October. MONA M03 competes with BYD's Seagull and Dolphin and the higher-priced Tesla Model 3, and was launched in a bid to grab market share from BYD, Nio, and Tesla.

After months of decline, the passenger vehicle sales of China - the largest auto market in the world - rose for a second straight month in October.

XPeng ( XPEV ) expects fourth quarter revenue between 15.3 billion yuan and 16.2 billion yuan, compared with analysts' average estimate of 14.77 billion yuan, according to data compiled by LSEG.

XPeng ( XPEV ) unveiled its P7+ executive sedan earlier this month, which became its first vehicle to incorporate large AI models that are trained on massive amounts of data.

The P7+ received over 31,000 non-refundable orders in three hours following the launch, and according to analysts at Jefferies, marks the beginning of the company's efforts to revamp its product line-up.

XPeng ( XPEV ) expects to deliver between 87,000 and 91,000 vehicles in the fourth quarter, up 44.6% to 51.3% from a year ago. It delivered 46,533 vehicles in the third-quarter, up 16.3% from a year ago.

Revenue for the third quarter ended Sept. 30 was 10.10 billion yuan ($1.39 billion), beating estimates of 9.77 billion yuan.

It reported a loss of 1.90 yuan per ADR, while analysts were expecting a loss of 1.71 yuan per ADR.

($1 = 7.2434 Chinese yuan renminbi)

(Reporting by Rishi Kant and Jaspreet Singh in Bengaluru)