Chinese electric vehicle manufacturer Xpeng experienced a significant stock decline after releasing financial results and forward guidance that disappointed investors. The company’s Hong Kong-listed shares dropped more than 9% on Tuesday, while its U.S.-listed shares had closed down 8.5% on the previous trading day.
The company reported a second-quarter net loss of 1.34 billion yuan alongside revenue growth of 8% to 19.74 billion yuan. However, the primary catalyst for the share decline was Xpeng’s third-quarter delivery forecast of between 115,000 and 121,000 vehicles, which fell short of market expectations. Analysts attributed the weakness to supply chain disruptions affecting the production ramp-up of the MONA L03 model. Following these results, Citi adjusted its price targets downward for both the company’s U.S. and Hong Kong listings.
Despite the operational challenges, Xpeng achieved a notable milestone in its emerging robotics division. The robotics unit completed its first funding round, raising more than $900 million and securing a post-transaction valuation exceeding $6.3 billion. IDG Capital led the round, with participation from Gaorong Ventures and strategic backing from major technology firms Tencent and Alibaba.
Analysts noted that Xpeng’s overall market valuation suggests the traditional EV business carries an implied value of approximately $6.5 billion, placing it at comparable levels to the nascent robotics unit. Observers characterized the robotics financing as a positive long-term development, citing the company’s transferable expertise in algorithms, artificial intelligence models, and semiconductor technology. Company leadership has articulated ambitious plans for robotics expansion, with CEO He Xiaopeng previously indicating that robot sales could exceed vehicle sales within the coming decade. The company has additionally established a separate business unit focused on flying vehicles.
Xpeng faces headwinds from broader market conditions, as China’s electric vehicle sector has experienced sustained weakness. While the company regained market share previously through its lower-priced Mona mass-market brand, maintaining sales momentum has proven challenging in the current environment.
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