Chinese electric vehicle manufacturer Xpeng announced Thursday that it anticipates second-quarter revenue will fall short of market predictions, highlighting the ongoing challenges facing the electric vehicle industry in China due to weakening demand and intense market competition.
Car sales within China have declined for seven consecutive months through April, with industry analysts predicting that electric vehicle and plug-in hybrid sales growth will likely decelerate in 2026 following several years of rapid market expansion.
Despite these challenges, Chinese electric vehicle manufacturers are focusing on sophisticated driver-assistance technology, feature-packed vehicles, and expanded product offerings to weather the current market downturn.
Key highlights from Xpeng’s first-quarter financial results include:
• The company anticipates total revenue ranging from 19.60 billion yuan ($2.89 billion) to 20.80 billion yuan during the second quarter, marking a year-over-year increase of 7.3% to 13.8%.
• This projection falls below the analyst consensus estimate of 21.71 billion yuan, according to LSEG data compilation.
• First-quarter revenue totaled 13.03 billion yuan, exceeding analyst expectations of 12.93 billion yuan.
• The company delivered 62,682 vehicles during the first quarter, representing a 33.3% decline from the 94,008 units delivered in the corresponding period last year. Xpeng anticipates delivering between 100,000 and 106,000 vehicles in the June quarter.
“Kickstarted by the successful launch of the GX, Xpeng will deliver four new models this year, positioning us for a robust sales growth trajectory,” CEO Xiaopeng He said.
• The company’s U.S.-traded shares, which have dropped nearly 19% year-to-date through the previous close, showed slight gains in early morning trading.
• Xpeng reported a first-quarter net loss attributable to ordinary shareholders of 1.78 billion yuan, expanding from a 664 million yuan loss in the same quarter last year and contrasting with a 383.2 million yuan profit recorded in the preceding quarter.
