Xpeng Motors reported second-quarter results that missed analyst expectations, with a net loss widening to RMB 1.34 billion from RMB 480 million a year earlier. Earnings per share came in at negative ¥1.29, a 344% downside surprise versus the ¥0.29 estimate. Revenue declined 3.9% year-on-year to RMB 19.74 billion, below the RMB 20.57 billion consensus.
Vehicle deliveries rose 65% sequentially to 103,295 units, but gross margin on vehicle sales compressed to 12.1% from 14.3% a year ago. Consolidated gross margin improved to 20.7%, while services revenue surged 93.9% to RMB 2.7 billion, including RMB 1.2 billion from Volkswagen’s technical research and development work. Research and development spending increased 32.1% to RMB 2.91 billion, and selling, general and administrative expenses rose 15.2%.
The company raised over $900 million for its robotics unit at a valuation of $6.2–$6.3 billion, led by IDG Capital with participation from Tencent and Alibaba. Its IRON humanoid robot, featuring 76 degrees of freedom and 2,250 TOPS of computing power, is slated for mass production in late 2026 with commercial deliveries beginning in 2027.
Xpeng’s overseas business exceeded 20,000 units in the first half of 2026, accounting for more than 25% of total revenue. The average selling price for exports exceeded EUR 40,000. Management guided Q3 revenue to RMB 21.7–23.4 billion, well below the RMB 26.6 billion consensus, and set a target of over 60,000 monthly deliveries in the fourth quarter alongside more than 40,000 quarterly overseas deliveries.
Analysts at Bernstein and Tiger Securities trimmed price targets to $18 and $15 respectively while maintaining cautious ratings. The stock has fallen 47% over the past 12 months and was trading near its 52-week low of $11.49 at $11.20 after the results.
Key catalysts ahead include the late-August launch of VLA 2.0 software, the September debut of the G9L model, Q3 delivery data in October, and the Q4 launch of the MONA L05. European regulatory approval for autonomous driving systems is targeted for the first half of 2027.
