Overview
Xpeng said it expects second-quarter revenue to land between 19.60 billion yuan and 20.80 billion yuan, a year-over-year increase of 7.3% to 13.8% but short of analysts' average forecast of 21.71 billion yuan, according to LSEG data. The guidance underscores a sustained pullback in demand and intensifying competition in China's electric vehicle sector.
First-quarter results and operating metrics
For the quarter ended in March, Xpeng recorded revenue of 13.03 billion yuan, narrowly topping estimates of 12.93 billion yuan. Despite that revenue beat, deliveries fell sharply: total vehicle deliveries in the first quarter came in at 62,682 units, down 33.3% from 94,008 units in the same period a year earlier. The company projected deliveries for the June quarter of between 100,000 and 106,000 units.
Net loss attributable to ordinary shareholders widened to 1.78 billion yuan in the first quarter, compared with a loss of 664 million yuan in the year-ago period. That result contrasts with a profit of 383.2 million yuan reported in the previous quarter. For reference, the exchange rate cited was $1 = 6.7796 Chinese yuan renminbi.
Market context and management response
Broader industry indicators cited alongside Xpeng's results point to a cooling market: domestic car sales in China declined for a seventh consecutive month in April, and industry estimates included in the report indicate that EV and plug-in hybrid sales growth may slow in 2026 after several years of rapid expansion. In response, Chinese EV manufacturers are increasingly emphasizing advanced driver-assistance systems, richer feature sets and expanded model lineups to navigate the downturn.
Xpeng's management is pursuing that strategy. CEO Xiaopeng He highlighted the company's recent product momentum, noting that the successful launch of the GX has helped to kickstart the model pipeline. He added that Xpeng plans to introduce four new models this year, which the company says will position it for a stronger sales trajectory.
Market reaction and shareholder context
Shares of Xpeng listed in the United States have experienced significant pressure this year, sliding nearly 19% year-to-date up to the last close. The stock was trading marginally higher in early sessions following the results and guidance, reflecting a mixed investor reaction to the outlook and recent performance.
Implications
The company faces a near-term challenge: revenue guidance that fails to meet consensus despite a modest quarterly revenue beat, falling deliveries compared with the prior year and a widened quarterly loss. Management is betting on new models and technology features to restore growth, but the pace of recovery will depend on broader market dynamics in China and the competitive response from other EV makers.
Key figures at a glance
- Q2 revenue guidance: 19.60 billion to 20.80 billion yuan (up 7.3% to 13.8% year-over-year).
- Analysts' average Q2 estimate: 21.71 billion yuan (LSEG).
- Q1 revenue: 13.03 billion yuan (est. 12.93 billion yuan).
- Q1 deliveries: 62,682 units (down 33.3% from 94,008 a year earlier).
- Q2 delivery guidance: 100,000 to 106,000 units.
- Q1 net loss attributable to ordinary shareholders: 1.78 billion yuan (prior-year loss 664 million yuan; prior quarter profit 383.2 million yuan).