Xpeng Inc. is set to report second-quarter earnings before the market opens on Monday, with analysts anticipating a narrowed loss amid intensifying price competition in China’s electric-vehicle sector.
The Guangzhou-based automaker is expected to post a loss of 0.29 yuan per share on revenue of 20.57 billion yuan ($2.84 billion), representing a 12.6% year-over-year increase in sales. This follows a first-quarter loss of 1.76 yuan per share on revenue of 13.03 billion yuan, which fell 6.6% short of expectations and triggered a sharp decline in its share price.
Xpeng’s stock currently trades at $12 per share, down 58% from its 52-week high of $28.24 and near its 52-week low of $11.49. The company has faced sustained pressure as domestic rivals slash prices to capture market share, a strategy that has weighed on profitability across the sector.
Analysts covering Xpeng, with a mean price target of $22.13, remain broadly bullish, assigning 21 buy ratings, three holds, and two sell recommendations out of 26 total evaluations. However, EPS estimates have been revised downward by 28.57% over the past 60 days, while revenue estimates have held relatively steady.
Despite the challenges, Xpeng reports a gross profit margin of 20%, trailing larger domestic rivals. Industry data indicates only three Chinese EV brands achieved profitability in the first half of 2026, underscoring the competitive pressures in the market.
The company continues to invest in artificial intelligence, autonomous driving, and its XNGP navigation system, positioning itself as a “Physical AI company” and directly competing with Tesla’s Full Self-Driving technology in China. Xpeng has also expanded internationally, delivering over 60,000 vehicles in Europe since 2024 and operating in 65 countries globally.
