Bernstein SocGen reduced its price target on XPeng to $18 from $20 while maintaining a Market Perform rating, citing broader losses and margin pressure in the second quarter of 2026.
The brokerage’s move follows a 6.8% net loss of RMB 1.3 billion, compared with a RMB 2.6 billion loss in the same period a year earlier. Revenue rose 8% year-over-year to RMB 19.7 billion, missing the Wall Street consensus of $20.57 billion. Vehicle revenue grew just 1% year-over-year, while services revenue nearly doubled, boosted by an estimated RMB 1.2 billion contribution from Volkswagen.
XPeng delivered 103,000 units in the quarter, a 0.1% year-over-year increase and a 64.8% rise from the first quarter. The average selling price reached RMB 165,000, but gross margins remained soft at 20.7%, with vehicle margins at 12.1%. Operating expenses climbed, with R&D spending up 32.1% year-over-year to RMB 2.9 billion, reflecting investments in new vehicle programs and AI development. SG&A expenses rose to 12.6% of revenue from 11.9% a year ago.
Tiger Securities also lowered its target to $15 from $20, keeping a Hold rating. XPeng’s shares were trading at $11.16, near their 52-week low of $11.49. InvestingPro’s fair value estimate stands at $14.78, suggesting the stock is undervalued despite profitability not expected until at least next year. XPeng continues to focus on autonomous driving and humanoid robotics as part of its long-term strategy.
