Shares of Chinese electric vehicle manufacturer Xpeng declined sharply following the release of financial results and forward guidance. Hong Kong-listed shares dropped more than 9% on Tuesday, while U.S.-listed shares had already fallen 8.5% on Monday, as investors reacted negatively to the company’s third-quarter delivery forecast.
The company reported second-quarter results showing a net loss of 1.34 billion yuan alongside revenue growth. For the upcoming quarter, Xpeng projected deliveries between 115,000 and 121,000 vehicles, a figure that fell below market expectations. Analysts attributed the shortfall primarily to supply chain disruptions that hampered production ramp-up for the MONA L03 model. Following the earnings announcement, Citi adjusted its price targets downward for both the U.S. and Hong Kong-listed shares.
Counterbalancing the disappointing vehicle delivery outlook, Xpeng’s robotics division completed its inaugural funding round, raising more than $900 million and achieving a valuation exceeding $6.3 billion. IDG Capital led the investment round, with participation from Gaorong Ventures and strategic backing from major technology firms Tencent and Alibaba. Company leadership framed the financing as a milestone for advancing humanoid robot commercialization globally.
Analysts noted that the robotics unit’s valuation now approaches the implied value of Xpeng’s core EV business at around $6.5 billion. The financing was characterized as a long-term strategic positive, with observers noting that Xpeng’s existing capabilities in artificial intelligence, algorithms, and semiconductor development could strengthen its robotics operations. The company’s leadership has articulated an ambition to eventually produce more robots than vehicles, though Xpeng currently faces headwinds in China’s competitive EV market.
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