Barclays reduced its price target on Chinese electric-vehicle maker Xpeng to $14 from $15 while maintaining an Underweight rating, citing concerns over delivery growth in the third quarter of 2026.
The bank now expects Xpeng’s monthly shipments to rise by roughly flat to low single digits year-over-year in August and September, totaling about 145,000 units for the quarter. Barclays had previously estimated deliveries of around 53,000 units per month in those two months, implying a 25% increase from the prior year.
Xpeng’s stock, listed as XPEV in New York, was trading at $11.15, slightly above its 52-week low of $11.10 and down 45% year-to-date. The company has faced supply chain constraints despite strong initial demand for its L03 model, which garnered 46,900 non-refundable orders within the first hour of launch. Xpeng has since implemented two-shift production to boost output.
For the fourth quarter of 2026, Xpeng expects deliveries to reach approximately 60,000 units per month, while full-year shipment growth is projected to remain in the mid-single-digit range year-over-year. This compares with a 126% surge in deliveries in fiscal 2025.
Xpeng also announced its first external financing for its humanoid robotics unit, Dogotix, securing $900 million in committed capital. Production of its IRON robots is slated to begin by year-end, with deployment in Xpeng stores planned for the first half of 2027 and external commercial sales to follow.
The company reported second-quarter revenue of RMB 19.7 billion, up 8% year-over-year and 51.5% quarter-over-quarter. However, adjusted loss per share widened to $1.29, exceeding expectations of a $0.29 loss. Vehicle revenue grew only 1% year-over-year, while service and other revenue, including contributions from Volkswagen, nearly doubled.
Other analysts have adjusted their targets as well. BofA Securities maintained a Buy rating with a $19 target, while Macquarie and Bernstein SocGen both reduced their targets to $18. Tiger Securities set its target at $15.
