Tiger Securities reduced its price target on XPeng Inc. to $15 from $20, maintaining a Hold rating as the Chinese electric-vehicle maker reported mixed second-quarter results.
The stock was trading at $11.19 at the time of the announcement, near its 52-week low of $11.49. XPeng posted adjusted earnings per share of a $1.29 loss in Q2, wider than the expected 29-cent loss, while revenue reached $19.74 billion, missing the $20.57 billion estimate. Revenue rose 8% year-over-year and 51.5% sequentially, driven by higher vehicle deliveries.
Consolidated gross margins improved during the quarter, but vehicle margins remained under pressure. High-margin services contributed disproportionately to profitability. Tiger Securities cited weaker near-term delivery momentum and limited visibility into robotics and Physical AI monetization as key concerns.
The firm expects flat year-over-year deliveries in Q3, below its projections, though this is partially offset by anticipated capacity expansion for the MONA L03 model, the launches of the G9L and MONA L05, and overseas growth in Q4. XPeng continues to operate at a loss and is not expected to achieve profitability in 2026.
XPeng’s humanoid robotics business is nearing commercialization, but analysts highlight uncertainty around execution, sustained demand, and long-term profitability in the segment.
