XPeng Shares Fall as Q2 Loss Wider Than Expected, Q3 Guidance Misses

XPeng Inc. shares fell on Monday after the Chinese electric vehicle maker reported a wider-than-expected second-quarter loss and issued third-quarter revenue guidance below Wall Street estimates.

Revenue Grows, Deliveries Flat

XPeng reported second-quarter revenue of RMB 19.74 billion, up 8% year-over-year and 51.5% quarter-over-quarter. The figure missed the analyst consensus estimate of $2.95 billion.

The Tesla competitor delivered 103,295 vehicles in the quarter, up 0.1% year-over-year.

As of June 30, XPeng operated 740 sales stores across 257 cities. Its self-built charging network included 3,780 charging stations, including 2,720 ultra-fast charging stations.

Gross Margin Improves, Loss Widens

Automotive sales revenue rose 1% year-over-year to RMB 17.05 billion, up 55% quarter-over-quarter, mainly driven by higher deliveries.

Gross margin improved to 20.7% from 17.3% in the same period last year. However, automotive gross margin declined to 12.1% from 14.3%, mainly due to the company's product generational transition.

XPeng's operating loss widened to RMB 1.14 billion from RMB 935 million in the same period last year.

Adjusted loss per American Depositary Share was RMB 1.29, or 19 U.S. cents, exceeding the analyst consensus estimate of a loss of RMB 0.76.

As of June 30, XPeng held $5.97 billion in cash.

Robotics Business Raises Over $900 Million

Separately, XPeng's robotics business raised over $900 million in funding, with a post-money valuation exceeding $6.3 billion. XPeng will retain control and continue to consolidate the business in its financial statements.

IDG Capital led the round, with Gaorong Capital participating. Tencent Holdings Ltd. and Alibaba Group Holding Ltd. joined as strategic investors.

XPeng plans to use the proceeds for robotics hardware and software, physical AI model training, data generation, mass production facilities, and global expansion.

The company expects its next-generation IRON humanoid robot to enter mass production by the end of 2026. Commercial launch and deliveries are expected in 2027 in both China and overseas markets.

Executives Bullish on Physical AI

XPeng Chairman and CEO He Xiaopeng said the strong performance of the GX and MONA L03 boosted management's confidence in upcoming models and strengthened the company's brand momentum.

He also said XPeng has reached key milestones in developing the mass-production version of its humanoid robot, aiming to become a global leader in physical AI, humanoid robotics, and autonomous driving.

Vice Chairman and Co-President Gu Hongdi said XPeng remains resilient despite industry cost pressures. He said gains from premiumization and global expansion helped keep gross margin above 20%.

Gu expects physical AI production and commercialization to accelerate over the next year, supporting meaningful gross profit growth and further R&D investment.

Q3 Guidance Misses Expectations

XPeng expects third-quarter deliveries of 115,000 to 121,000 vehicles. This represents a year-over-year change ranging from a decline of 0.87% to growth of 4.30%.

The company forecasts revenue of RMB 21.7 billion to RMB 23.4 billion, representing growth of 6.47% to 14.81%. The guidance came in below the analyst consensus estimate of RMB 25.88 billion.

XPEV Stock Performance

XPEV stock performance: In pre-market trading on Monday, XPeng shares fell 4.27% to $11.67.