Xpeng shares declined 9.5% to HK$43.14 on Tuesday after the Chinese electric vehicle manufacturer reported a deeper-than-expected loss and lowered its third-quarter revenue guidance, falling short of analyst expectations.
The company posted a net loss of RMB 3.12 billion in the first half of 2026, a 173% year-over-year deterioration. Vehicle deliveries totaled 166,000 units, a 15.8% decline from the same period in 2025. Xpeng warned that achieving its full-year delivery target would require record-breaking performance in the third and fourth quarters.
For the third quarter of 2026, Xpeng projected revenue between RMB 21.70 billion and RMB 23.40 billion, representing growth of 6.5% to 14.8%. The guidance fell significantly below the analyst consensus estimate of approximately RMB 25.88 billion, contributing to the sharp selloff in shares.
The stock had already been under pressure following a series of recalls by Chinese EV manufacturers, including over 4 million vehicles due to safety concerns related to door handles. Xpeng’s weaker-than-expected results and guidance underscore challenges in the competitive Chinese EV market amid rising cost pressures and shifting consumer demand.
