Shares of Xpeng Motors slumped 9.5% to HK$43.14 on Tuesday as investors reacted to a deeper-than-expected first-half loss and a revenue outlook that fell short of expectations.
The company reported a net loss of RMB 3.12 billion for the six months ended June 30, a 173% increase from the RMB 1.14 billion loss recorded in the same period last year. The deterioration reflected higher operating costs and competitive pricing pressures in China’s electric vehicle market.
Xpeng also provided third-quarter revenue guidance of RMB 21.70 billion to RMB 23.40 billion, a range that implies growth of 6.5% to 14.8% year-over-year. The forecast undershot the analyst consensus of approximately RMB 25.88 billion, which analysts said amplified the sell-off. The company cited macroeconomic headwinds and cautious consumer spending as key factors influencing its outlook.
Vehicle deliveries for the first half totaled 166,000 units, down 15.8% from the prior-year period. The decline followed a broader slowdown in China’s EV sector, compounded by recent safety recalls affecting more than 4 million vehicles across major domestic manufacturers due to door handle defects.
Xpeng’s stock has been under pressure in recent sessions, with the latest drop extending losses amid broader concerns over China’s EV demand and profitability. The company is scheduled to release its second-quarter earnings report later this week, which market participants will scrutinize for further signs of operational improvement or sustained challenges.
