Xpeng projects Q2 2026 revenue between $2.9‑$3.1 bn, citing soft Chinese EV demand and fierce competition. Read the full analysis now.
Chinese electric‑vehicle (EV) maker Xpeng has lowered its expectations for second‑quarter 2026 revenue, highlighting a softening market and intensifying competition at home.
Revenue outlook for Q2 2026
In a filing released on 29 May, Xpeng projected revenue of 19.6 billion to 20.8 billion yuan (approximately $2.89 bn–$3.07 bn) for Q2 2026. This translates to a year‑over‑year growth range of 7.3 % to 13.8 %. However, the figure falls short of the consensus forecast of 21.71 billion yuan ($3.2 bn) compiled by LSEG analysts.
Why the market is under pressure
The broader Chinese auto market continues to weigh on EV manufacturers. Domestic vehicle sales have slipped for the seventh consecutive month in April 2026, and industry observers warn that the rapid growth seen in battery‑electric (BEV) and plug‑in hybrid (PHEV) sales could decelerate this year.
Despite the headwinds, Chinese EV firms are doubling down on advanced driver‑assist technologies, richer equipment bundles, and wider model line‑ups to stay competitive.
First‑quarter performance
For Q1 2026, Xpeng posted revenue of 13.03 billion yuan ($1.92 bn), slightly above analysts’ estimate of 12.93 billion yuan. However, vehicle deliveries dropped sharply to 62,682 units, a 33.3 % decline from the 94,008 units delivered in the same period last year.
Delivery targets and new models
Looking ahead to Q2, the company aims to hand over between 100,000 and 106,000 vehicles. CEO He Xiaopeng attributed the expected rebound to a series of new model launches slated for 2026. He said: “Powered by the successful launch of the GX, Xpeng will introduce four additional models this year, creating a solid foundation for robust sales growth.”
Profitability challenges
Net loss attributable to ordinary shareholders widened to 1.78 billion yuan ($262.5 million) in Q1 2026, up from a loss of 664 million yuan ($97.9 million) a year earlier. The loss marks a reversal from the profit of 383.2 million yuan ($56.5 million) recorded in the preceding quarter.
Stock market reaction
Xpeng’s U.S.-listed shares have slipped almost 19 % since the start of the year, though they nudged higher in early trading following the earnings release.
What’s next?
Investors will be watching closely how Xpeng’s new vehicle pipeline, especially the GX and upcoming models, performs amid a market that is gradually cooling. The company’s ability to balance product innovation with cost efficiency will be critical to reversing the current revenue shortfall.