Chinese electric‑vehicle manufacturer Xpeng Inc. announced on Monday that it expects third‑quarter revenue to range between 21.7 billion and 23.4 billion yuan (approximately $3.2 billion to $3.5 billion), well below the average analyst estimate of 26.6 billion yuan compiled by LSEG. The guidance comes as competition intensifies in China’s already crowded EV sector.
Recent performance and financial results
For the second quarter ended June 30, Xpeng delivered 103,295 vehicles, landing comfortably within its internal target of 100,000 to 106,000 units. Despite meeting its sales range, the company reported a net loss attributable to ordinary shareholders of 1.34 billion yuan, far exceeding the consensus expectation of a 511.8 million‑yuan loss.
“During the second quarter of 2026, our operations remained resilient despite industry‑wide cost pressures,” said Hongdi Brian Gu, Xpeng’s Vice Chairman and Co‑President. He added that the firm continues to focus on cost control while expanding its product lineup.
Market conditions in China
China’s overall car market has been in decline since late last year, driven by weak consumer demand and prolonged price wars that have left the world’s largest auto market with excess capacity. Automakers, including Xpeng, are increasingly looking to boost exports and pursue overseas expansion to offset domestic headwinds.
Product updates and recalls
In May, Xpeng introduced the MONA L03, an AI‑enabled SUV coupe positioned to attract tech‑savvy buyers. However, the company also announced a recall of 264,842 EVs as part of a broader Chinese safety campaign involving roughly 4.3 million vehicles over concerns with emergency door‑release mechanisms.
Robotics unit raises record financing
Separately, Xpeng’s robotics division secured more than $900 million in its first funding round, setting a new benchmark for private financing in China’s embodied AI sector. The capital infusion is expected to accelerate development of autonomous‑driving technologies and other AI‑driven applications.
Share price reaction
Following the earnings preview, Xpeng’s U.S.-listed shares slipped 3.1 percent in pre‑market trading, extending a year‑to‑date decline of roughly 40 percent as of the previous Friday.
The company’s outlook underscores the challenges facing Chinese EV makers as they navigate a market that is both highly competitive and increasingly regulated. Investors will be watching how Xpeng balances its domestic sales pressures with its ambitions in AI and international expansion.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
