Xpeng Forecasts Q2 Revenue Below Estimates on Weak EV Demand

Xpeng Forecasts Q2 Revenue Below Estimates on Weak EV Demand

Electric vehicle maker Xpeng on Thursday forecast second-quarter revenue below market expectations, underscoring a prolonged slowdown in demand and stiff competition in the Chinese EV market.

Financial Outlook

Xpeng projected total revenue between 19.60 billion yuan ($2.89 billion) and 20.80 billion yuan in the second quarter, representing a year-over-year rise of 7.3% to 13.8%. The forecast is below analysts' average estimate of 21.71 billion yuan, per data compiled by LSEG.

Revenue for the first quarter ended March stood at 13.03 billion yuan, above estimates of 12.93 billion yuan.

Deliveries and Market Conditions

Total vehicle deliveries for the first quarter were 62,682 units, down 33.3% from 94,008 in the same period last year. For the June quarter, Xpeng projected deliveries between 100,000 and 106,000 units.

Domestic car sales in China fell for a seventh straight month in April, with industry estimates showing that EV and plug-in hybrid sales growth were likely to slow in 2026 after years of rapid expansion.

Company Strategy

CEO Xiaopeng He said, "Kickstarted by the successful launch of the GX, Xpeng will deliver four new models this year, positioning us for a robust sales growth trajectory."

Chinese EV makers are betting on advanced driver-assistance systems, feature-rich vehicles and broader model lineups to help navigate the downturn.

Net Loss

Xpeng reported a first-quarter net loss attributable to ordinary shareholders of 1.78 billion yuan, widening from a loss of 664 million yuan in the year-ago period and compared with a profit of 383.2 million yuan in the previous quarter.