Chinese electric vehicle maker Xpeng has forecast third-quarter revenue below Wall Street expectations, highlighting the intensifying competition and weak consumer demand in the world’s largest auto market.
Xpeng expects revenue for the quarter ending September to come in between 21.7 billion yuan and 23.4 billion yuan, below analysts’ average estimate of 26.61 billion yuan, according to LSEG data.
The weaker outlook comes as China’s domestic car market continues to grapple with excess capacity, subdued consumer demand and years of aggressive price competition, prompting automakers to increase exports and expand overseas.
Xpeng delivered 103,295 vehicles in the second quarter ended June 30, within its forecast range of 100,000 to 106,000 units.
“During the second quarter of 2026, our operations remained resilient despite industry-wide cost pressures,” Xpeng Vice Chairman and Co-President Hongdi Brian Gu said.
Despite the deliveries, Xpeng reported a net loss attributable to ordinary shareholders of 1.34 billion yuan for the second quarter, significantly wider than analysts’ expected loss of 511.8 million yuan.
Shares of Xpeng listed in the US fell 3.1% in premarket trading on Monday, extending losses that had already reached about 40% for the year as of Friday.
The company is also facing additional pressure from a vehicle recall. Xpeng recalled 264,842 electric vehicles as part of a wider recall in China involving about 4.3 million vehicles over concerns surrounding emergency door releases.
Xpeng has continued to push new products as it seeks to compete in the crowded Chinese EV market. Last month, it launched the MONA L03, an AI-powered SUV coupe.
Meanwhile, the company’s robotics unit raised more than US$900 million in its first funding round, setting a record for a single private financing in China’s embodied artificial intelligence sector.
The fundraising underscores Xpeng’s broader push beyond electric vehicles as Chinese automakers increasingly diversify into artificial intelligence and robotics amid fierce competition in the domestic car market.
The yuan was trading at around 6.7227 to the US dollar at the time of the report.
Reuters
