Xpeng misses Q2 revenue forecasts as EV demand slows

Chinese electric vehicle manufacturer Xpeng has issued a weaker-than-expected revenue forecast for the second quarter, highlighting a prolonged consumer slowdown and brutal domestic price wars that continue to squeeze the world's largest automotive market.

According to data compiled by LSEG, Xpeng expects its second-quarter revenue to land between 19.60 billion yuan ($2.89 billion) and 20.80 billion yuan. While that represents a modest year-over-year increase of 7.3% to 13.8%, it falls noticeably short of the 21.71 billion yuan Wall Street analysts had targeted, News.Az reports, citing Reuters.

The cautious outlook mirrors a broader cooling period for the entire industry. Vehicle sales in China fell for a seventh consecutive month in April, with market experts projecting a significant deceleration in EV and plug-in hybrid growth throughout 2026 following years of blistering, unchecked expansion.

Xpeng's newly released first-quarter earnings report paints a mixed picture of its financial health:

Beating Q1 revenue targets: Revenue for the first quarter ending in March reached 13.03 billion yuan, slightly outperforming expectations of 12.93 billion yuan.

Widening losses: The company's first-quarter net loss attributable to ordinary shareholders widened significantly to 1.78 billion yuan ($262 million), down from a loss of 664 million yuan in the same period last year. It also marks a sharp reversal from the surprise 383.2 million yuan profit logged in the final quarter of 2025.

Delivery slump: Total vehicle deliveries for the first quarter cratered by 33.3%, dropping to 62,682 units compared to 94,008 units in Q1 of last year.

Relying on tech and new rollouts to pivot
Despite the challenging environment, Xpeng is betting heavily on advanced AI-driven driver assistance systems, premium smart features, and an aggressive product expansion to claw back market share.

The automaker is projecting a major delivery rebound for the June quarter, targeting between 100,000 and 106,000 units. Xpeng CEO Xiaopeng He expressed strong confidence in the company's turnaround plan, noting that the successful May launch of its new flagship GX SUV marks the beginning of a massive product offensive. The company plans to roll out four entirely new EV models before the end of the year to supercharge its sales trajectory.

Investors reacted calmly to the mixed financial update. While Xpeng’s U.S.-listed shares have taken a severe beating this year—sliding nearly 19% as of Wednesday's close—the stock managed to tick up marginally in early Thursday trading.

News.Az 

By Aysel Mammadzada