Chinese electric vehicle manufacturer Xpeng experienced significant stock declines following the release of disappointing quarterly results and forward guidance. Hong Kong-listed shares dropped more than 9% on Tuesday, while U.S.-listed shares closed 8.5% lower on Monday.
The company reported a second-quarter net loss of 1.34 billion yuan (equivalent to 200 million in other currency) despite revenue rising 8% to 19.74 billion yuan. More significantly, Xpeng projected third-quarter deliveries between 115,000 and 121,000 vehicles, a figure that fell short of market expectations. Analysts attributed the shortfall primarily to supply chain disruptions that hindered production ramp-up of the MONA L03 model. Following these results, Citi adjusted downward its price targets for both the company’s U.S. and Hong Kong listings.
The stock performance stood in contrast to positive developments in Xpeng’s robotics division. The robotics unit completed its initial funding round, raising more than $900 million and achieving a post-transaction valuation exceeding $6.3 billion. IDG Capital led the round, with participation from Gaorong Ventures alongside strategic investments from Tencent and Alibaba. Brian Gu, the company’s vice chairman and co-president, characterized the funding as supporting advancement toward “mass production and commercial deployment for advanced humanoid robots.”
Analysts noted that Xpeng’s current overall valuation suggests its automotive business carries an implied value near $6.5 billion, positioning it at similar levels to the emerging robotics unit. Citi characterized the robotics financing as offering long-term benefits, highlighting potential applications of Xpeng’s existing expertise in algorithms, artificial intelligence models, and chip development to the robotics sector.
The Guangzhou-based company operates multiple business segments beyond electric vehicles, including a flying vehicles unit. Despite recovering market share through its Mona brand positioning in the lower-priced segment, Xpeng has faced ongoing challenges maintaining sales momentum within China’s contracting electric vehicle market.
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