XPeng Inc. (NYSE:XPEV) stock fell Monday after the Chinese electric vehicle maker reported a wider-than-expected second-quarter loss and issued a third-quarter revenue outlook below Wall Street estimates.
Revenue Rises, Deliveries Remain Flat
XPeng reported second-quarter revenue of 19.74 billion Chinese yuan ($2.91 billion), up 8% year over year and 51.5% from the previous quarter. The figure missed the analyst consensus estimate of $2.95 billion.
The Tesla Inc. (NASDAQ:TSLA) rival delivered 103,295 vehicles during the quarter, up 0.1% from a year earlier.
As of June 30, XPeng operated 740 sales stores across 257 cities. Its self-operated charging network included 3,780 stations, including 2,720 ultra-fast charging stations.
Margins Improve, Loss Widens
Vehicle sales revenue rose 1% year over year to 17.05 billion yuan ($2.51 billion) and jumped 55% sequentially, mainly due to higher deliveries.
Gross margin improved to 20.7% from 17.3% a year earlier. However, vehicle margin fell to 12.1% from 14.3%, mainly due to the company’s product-generation transition.
XPeng’s operating loss widened to 1.14 billion yuan ($168.39 million) from 934.65 million yuan a year earlier.
Adjusted loss per American depositary share was 1.29 yuan, or 19 cents, wider than the analyst consensus estimate for a loss of 0.76 yuan.
XPeng had $5.97 billion in cash as of June 30.
Robotics Unit Raises More Than $900 Million
Separately, XPeng’s robotics business raised more than $900 million at a post-money valuation above $6.3 billion. XPeng will retain control and continue consolidating the unit in its financial statements.
IDG Capital led the funding round, with Gaorong Ventures participating. Tencent Holdings Ltd. (OTC:TCEHY) and Alibaba Group Holding Ltd. (NYSE:BABA) joined as strategic investors.
XPeng plans to use the proceeds for robotics hardware and software, physical AI model training, data generation, mass-production facilities and global expansion.
The company expects its next-generation IRON humanoid robot to enter mass production by the end of 2026. Commercial launches and deliveries in China and overseas markets are expected in 2027.
Executives Bet On Physical AI
Xiaopeng He, XPeng’s chairman and CEO, said the strong performance of the GX and MONA L03 boosted management’s confidence in upcoming models and strengthened the company’s brand momentum.
He also said XPeng has reached key milestones in developing the mass-production version of its humanoid robot and aims to become a global leader in physical AI, humanoid robotics and autonomous driving.
Vice Chairman and Co-President Hongdi Brian Gu said XPeng remained resilient despite industrywide cost pressures. He said gains from premiumization and global expansion helped keep gross margin above 20%.
Gu expects physical AI production and commercialization to accelerate over the next year, supporting meaningful gross profit growth and further research and development investment.
Third-Quarter Outlook Falls Short
XPeng expects third-quarter deliveries of 115,000 to 121,000 vehicles. That represents a year-over-year change ranging from a 0.87% decline to 4.30% growth.
The company forecast revenue of 21.70 billion yuan to 23.40 billion yuan, representing growth of 6.47% to 14.81%. The outlook came in below the analyst consensus estimate of 25.88 billion yuan.
XPEV Price Action
XPEV Price Action: XPeng shares were down 4.27% at $11.67 during premarket trading on Monday, according to Benzinga Pro data.
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