Shares of Chinese electric vehicle manufacturer Xpeng declined sharply in trading following the release of financial results and forward guidance that disappointed investors. Hong Kong-listed shares dropped more than 9% on Tuesday, while U.S.-listed shares had closed 8.5% lower the previous day.
The company reported second-quarter financial results showing a net loss of 1.34 billion yuan, representing a wider loss compared to the prior year, while revenue increased 8% to 19.74 billion yuan. Looking ahead, Xpeng provided third-quarter delivery guidance of between 115,000 and 121,000 vehicles. Analysts at Citi indicated that this forecast fell short of market expectations, attributing the shortfall primarily to supply chain disruptions that hindered the production ramp for the MONA L03 model. Following the results, Citi adjusted its price targets downward for both the company’s U.S. and Hong Kong listings.
In a separate development with longer-term strategic implications, Xpeng’s robotics division completed its first funding round, raising more than $900 million and achieving a post-transaction valuation exceeding $6.3 billion. IDG Capital led the investment round, with participation from Gaorong Ventures and strategic backing from technology companies Tencent and Alibaba. Company leadership highlighted the investment as a milestone toward advancing humanoid robot manufacturing and commercial deployment at scale.
According to Citi’s valuation analysis, if the parent company’s current market capitalization fully reflects the robotics unit’s valuation, the implied value of the core EV business would be approximately $6.5 billion, suggesting near-parity between the established automotive division and the emerging robotics segment. The bank characterized the robotics financing as a positive development over the longer term, noting that Xpeng’s existing capabilities in algorithms, artificial intelligence models, and semiconductor design could be leveraged to advance humanoid robot development.
Xpeng had regained market share during the prior year through its lower-priced Mona brand offering, though the company has faced headwinds in sustaining sales momentum as China’s broader electric vehicle market experienced contraction.
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